Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Business offers qualified support on Air NZ deal

Business offers qualified support on Air NZ deal

Provided the incentives established under the Air New Zealand/Qantas Joint Service Agreement work as intended, to maintain competitive pressures on passenger and freight routes, the Employers & Manufacturers Association (Northern) says it will support the plan.

"On behalf of business customers, the Employers & Manufacturers Association will be holding Air New Zealand to account to ensure flight frequency and pricing impacts on passenger and freight rates are delivered," said Alasdair Thompson, EMA's chief executive.

"Business accepts Air New Zealand has no alternative but to enter an agreement like this with Qantas if it is not to become a permanent recipient of tax payer subsidies.

"This may be the only viable way forward for Air New Zealand if it is to meet its strategic aims. In the end neither New Zealand nor Air New Zealand have many choices considering our smallness, our Slovenia level of GDP, and the state of the Air New Zealand balance sheet.

"For Air New Zealand to remain viable commercially it must achieve on three fronts:

· maintain its strength on domestic routes,

· develop stronger trans Tasman links with feeder services from and to Australia, and

· eliminate its losses on its long haul routes.

"The deal with Qantas appears a balanced way forward whereby all three strategic objectives can be achieved.

"In exchange for the 22.5 per cent shareholding of Qantas in Air New Zealand and the lessening of competition domestically and across the Tasman, we are pleased at the prospect of the positive outcomes mooted.

"The extra engineering work Qantas will require of Air New Zealand could amount to an extra 200 high skill jobs, while an extra 50,000 visitors could be made available by Qantas through its trans Tasman links.

"Nonetheless the plan's success or failure rests on whether market competition can be sustained, for New Zealand as a destination to retain its price appeal and our airfreight remains competitive domestically and overseas.

"The JSA's competitive framework provides that the airline demonstrating it is the most cost effective on any route will be the one permitted to expand on that route. We are relying on the Commerce Commission to determine whether this proposal will be adequate to incentivise ongoing competition.

"If, despite the assurances of Air New Zealand Chief executive Ralph Norris and chairman John Palmer, things prove otherwise, we will be vocal in noting our opposition to any lack of capacity or price increases.

"As much as price regulation is disliked we will call for it at the first sign of anti-competitive behaviour."

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>


Corrections Corrected: Supreme Court Rules On Release Dates

Corrections has always followed the lawful rulings of the Court in its calculation of sentence release dates. On four previous occasions, the Court of Appeal had upheld Corrections’ practices in calculating pre-sentence detention. More>>


Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>


General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Gordon Campbell: On Our Posturing At The UN

In New York, Key basically took an old May 2 Washington Post article written by Barack Obama, recycled it back to the Americans, and still scored headlines here at home… We’ve had a double serving of this kind of comfort food. More>>


Treaty Settlements: Bills Delayed As NZ First Pulls Support

Ngāruahine, Te Atiawa and Taranaki are reeling today as they learnt that the third and final readings of each Iwi’s Historical Treaty Settlement Bills scheduled for this Friday, have been put in jeopardy by the actions of NZ First. More>>


Gordon Campbell: On The Damage De-Regulation Is Doing To Fisheries And Education, Plus Kate Tempest

Our faith in the benign workings of the market – and of the light-handed regulation that goes with it – has had a body count. Back in 1992, the free market friendly Health Safety and Employment Act gutted the labour inspectorate and turned forestry, mining and other workplace sites into death traps, long before the Pike River disaster. More>>

Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news