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

 

Parliament Today:

Werewolf: The Defence Pretence

Last year, the world began spending more money on weapons again, for the first time since 2011... New Zealand belongs to a region – Asia and Oceania – where military spending rose sharply in 2015, by 5.4 per cent. More>>

ALSO:

Gordon Campbell: On Not Crying Foul, Argentina

So a couple of guys found to be criminally liable of environmental pollution in Argentina lodge an application with the Overseas Investment Office… in order to buy some prime New Zealand rural land. Seems that their factory back home had carelessly and/or intentionally discharged toxic waste into the Lujan river. Bummer... More>>

ALSO:

Urban & Rural: $303m To Merge And Modernise New Zealand’s Fire Services

Internal Affairs Minister Peter Dunne today announced funding of $303 million over five years to combine urban and rural fire services into one organisation from mid-2017. More>>

ALSO:

High Trust Regime: What Did The PM Tell His Lawyer About Foreign Trusts?

The Government stopped the IRD from reviewing New Zealand foreign trusts shortly after the Prime Minister’s lawyer wrote to the Revenue Minister claiming John Key had promised him the regime would not be changed. More>>

ALSO:

Road Crime: Wicked Campers Vans Classified As Objectionable

The definition of publication includes any "thing that has printed or impressed upon it, or otherwise shown upon it, 1 or more (or a combination of 1 or more) images, representations, signs, statements, or words", The Classification Office has previously classified such 'things' as billboards, t-shirts, and even a drink can. This is the first time the Classification Office has classified a vehicle. More>>

ALSO:

'When New' Repairs: Landmark EQC Settlement

The Earthquake Commission has cut a deal with 98 Canterbury homeowners that affirms the government entity's responsibility to repair earthquake-damaged property to a 'when new' state, as well as covering repairs for undamaged parts of a property and clarifying its position on cash settlement calculations. More>>

ALSO:

Gordon Campbell: On Kiwirail’s Latest Stint In The Dogbox

The denigration of Kiwirail continues. The latest review (based on a 2014 assessment) of the options facing the company have enabled Kiwirail to be hung out to dry once again as a liability and burden on the taxpayer. More>>

ALSO:

Royal Society Report: Good Opportunities To Act Now On Climate Change

There are many actions New Zealand can and should take now to reduce the threat of climate change and transition to a low-carbon economy, a report released today by the Royal Society of New Zealand finds... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news