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

AMA: Scoop's 'Invisible Paywall'

Operation Chrysalis: The Final Countdown - Thanks & There's Still Time To Pledge

Phew! We are now counting down the hours to the end of this crowd-funding campaign at 11pm on Sunday. Thankyou to all those Scoop readers and supporters who have pledged already. You have been awesome. But this is not over yet. More>>

 
 

PARLIAMENT TODAY:

IPCA Reports: Significant Problems In Police Custody

In releasing two reports today, the Independent Police Conduct Authority has highlighted a number of significant problems with the way in which Police deal with people who are detained in Police cells. More>>

ALSO:

Inspector-General of Intelligence and Security: Inquiry Into GCSB Pacific Allegations

The complaints follow recent public allegations about GCSB activities. The complaints, and these public allegations, raise wider questions regarding the collection, retention and sharing of communications data. More>>

ALSO:

TPPA Investment Leak: "NZ Surrender To US" On Corporates Suing Governments

Professor Jane Kelsey: ‘As anticipated, the deal gives foreign investors from the TPPA countries special rights, and the power to sue the government in private offshore tribunals for massive damages if new laws, or even court decisions, significantly affected their bottom line’. More>>

ALSO:

Werewolf: The Myth Of Steven Joyce

Gordon Campbell: The myth of competence that’s been woven around Steven Joyce – the Key government’s “Minister of Everything” and “Mr Fixit” – has been disseminated from high-rises to hamlets, across the country... More>>

ALSO:

RMTU: No Public Submissions On International Government Procurement Deal

“The government is preparing to assent to the Government Procurement Agreement, a World Trade Organisation Treaty which opens up New Zealand Government contracts to foreign companies and closes the door on local businesses and their workers. However the Foreign Affairs, Defence and Trade Select Committee is refusing to take public submissions on the decision.” More>>

ALSO:

Gordon Campbell:
On Pacific Spying

So New Zealand spied on its friends and allies in the Pacific – and has not only been passing on the results to the NSA, but has apparently passed on the details of the Pacific’s relations with Taiwan to our other best friends, the Chinese. On the side, the Key government has also been using the security services to gauge the chances of Trade Minister Tim Groser landing the top job at the WTO... More>>

ALSO:

State Housing Transfer: Salvation Army Opts Out

The Salvation Army has decided against negotiating with Government for the transfer of Housing New Zealand stock.
More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news