Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Airports association calls for action for fair prices

Airports association calls for Commerce Commission action to ensure fair prices on ‘monopoly routes’


New Zealand Airports Association (NZ Airports) has welcomed Air New Zealand’s commercial success, but says regions are right to question whether provincial routes are generating excessive profits.

Association chief executive Kevin Ward said the situation could be resolved by the Commerce Commission introducing an information disclosure regime for regional airlines with monopolies on routes.

“News of a third consecutive rise in Air New Zealand profits shows our national airline is consistently successful, which is good for New Zealand,” said Mr Ward.

“Making a profit is a good thing for the airline’s ongoing investment, innovation, reliability, and promotion of New Zealand, but very high airfares have a choking effect on regional economies, business connections, tourism and social links.

“There are big question marks around Air New Zealand’s monopoly domestic routes where there is potential for excessive profits, and no transparency or monitoring.”

Mr Ward said there is currently a lack of good information and analysis which would enable people to see for themselves if airfares to the regions are reasonable or not.

“It would be in the national interest to have transparency and disclosure on those domestic routes where there is no choice for air passengers,” he said.

“The Commerce Commission could be directed by the Government to include monopoly regional airlines in an information disclosure regime. That would be the best way to assure New Zealanders that Air New Zealand’s prices are fair.

“Quality standards and schedules could also be included to ensure the reasonable needs of each region are met.”

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news