Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Commission Needs to Look at Regional Airfare Pricing

Commerce Commission Needs to Look at Regional Airfare Pricing

New Zealand First is calling on the Commerce Commission to investigate the obvious price gouging by Air New Zealand on regional routes.

“Air New Zealand has a near monopoly on regional air travel, with over 80% of the regional market, and it has been using its market dominance to charge fares which would not be viable if there was any competition,” says Transport spokesperson Denis O’Rourke.

“The airline knows that potential competitors face many difficulties if they try to set up in competition, the biggest of which is the aggressive response which Air New Zealand retaliates with when faced with a competitor. What you see then is sudden and large fare reductions to ensure that the competitor is burnt off as soon as possible.

“Air New Zealand cares little about its regional customers, and is only interested in maintaining market dominance, price gouging, and feeding regional customers on to the main trunk routes. The fact that air fares to regional centres are more than double those for the main centres speaks for itself.

“Air New Zealand’s recently announced profit of $262 million shows that it has the scope to reduce regional air fares substantially.

“While its fares have risen by almost 10% in the last year, passenger numbers have only risen 0.8% overall. Air travel to and from regional centres has actually decreased because Air New Zealand’s regional fares are suppressing demand.

“This is bad news for the regions which are trying to attract holidaymakers, family visitors and business people. It would be in Air New Zealand’s own commercial interests to encourage regional traffic by offering fares which more people can afford.

“The Commerce Commission has shown little interest in investigating this state of affairs. It should change its mind.”

ENDS


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

22/2: Christchurch Quake Memorial To Be Unveiled

A city, a region, a nation and an international community impacted by the Canterbury Earthquakes will come together tomorrow to mark the sixth anniversary of the deadly quake and dedicate Oi Manawa Canterbury Earthquake National Memorial.

The Canterbury Earthquake National Memorial Dedication and Civic Memorial Service starts at 12 noon tomorrow, February 22, at the Memorial site on the Ōtākaro/Avon River, in the area bordered by the Montreal Street Bridge, Durham Street, and Cambridge and Oxford Terraces. More>>

 

Gordon Campbell: On The Mana-Maori Party Deal

If the self-interest involved wasn’t so blatant, the electorate deal between the Maori Party and Hone Harawira would be kind of poignant. It’s a bit like seeing the remaining members of Guns’n’Roses or the Eagles back on the road touring the nostalgia circuit… playing all the old hits of Maori unity and kaupapa Maori politics. More>>

ALSO:

Private Provision: First Social Bond To Focus On Mental Health

New Zealand’s first social bond will help around 1700 people with mental illness into work, Finance Minister Steven Joyce and Social Investment Minister Amy Adams say. More>>

ALSO:

Megaupload Case: High Court Rules Dotcom, Co-Accused Eligible For Extradion

Internet entrepreneur Kim Dotcom and his three co-accused are eligible for extradition to the United States, New Zealand's High Court ruled... Justice Murray Gilbert upheld a decision by the District Court that there were grounds for Dotcom, Mathias Ortmann, Bram van der Kolk and Finn Batato to be extradited. More>>

ALSO:

PREVIOUSLY:

Immigration: Short Reprieve For Nine Indian Students

A temporary hold on deportations of nine Indian students is a step in the right direction but the Government urgently needs to implement safeguards to stop further injustices to more international students, the Green Party says. More>>

EARLIER:

Port Hills Fire: Midday Update, Monday 20 February

• 9 homes destroyed
• 2 homes with partial damage. Damage includes things like cracked windows, heat damage.
• 3 properties with damage to other external structures e.g sheds or outbuildings More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news