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

Gordon Campbell: On The Peters/Ardern Triumph

There are a lot of good reasons to feel joyful about this outcome. It is what so many young voters – the best hope for the country’s future – wanted.

Far more important than the implications for the Economy Gods ( is the dollar up or down? ) last night’s outcome will also mean many, many vulnerable New Zealanders will have a better life over the next three years at least.

Yet the desire for change was in the majority, across the country..>>>More


Reaction

Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome | Greens on their joining Govt | EDS welcomes new govt | Immigrant groups worry | Feds ready to engage new coalition government | Labour Ministers of the Crown announced

 

Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>

ALSO:


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>

ALSO:

Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>

ALSO:

Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>

ALSO:

Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>

ALSO:

Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>

ALSO:

Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election