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Another Labour business deal going sour

Hon Roger Sowry MP National Party Transport Spokesman

09 September 2003

Another Labour business deal going sour

National Party Transport spokesman Roger Sowry is urging the Government to turn its mind to the next phase for Air New Zealand as a stand-alone company.

He's commenting in the wake of the ACCC announcement today that the Australian Competition watchdog remains opposed to the Air New Zealand Qantas alliance.

"The Government should stay out of the high risk airline industry - it should accept defeat on its proposed merger with Qantas, and it should plan for Air New Zealand's future accordingly," Mr Sowry says. "The National Party has maintained throughout the process that the merger was not in the interests of the New Zealand travelling public.

"Our position has now been endorsed by Australia's competition watchdog, despite heavy political pressure from Canberra for the deal to proceed," says Mr Sowry.

"I believe the ACCC decision will set the benchmark for New Zealand's Commerce Commission which will now give the merger the thumbs down as well.

"With Air New Zealand profits rebounding, there is no reason why the airline can't survive on its own.

"The National Party believes control of our national airline would have eventually shifted across the Tasman had the deal gone through," Mr Sowry says.


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