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Tuesday 19th October 2010 |
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The Australian Consumer and Competition Commission risks showing its protectionist tendencies if it rejects Air New Zealand and Pacific Blue's rejigged trans-Tasman code sharing proposal, says a top aviation industry commentator.
After a draft rejection of an initial code-sharing bid, Air NZ chief executive Rob Fyfe said the airlines would provide more flights and commit to increased capacity on trans-Tasman routes where their proposal would reduce competition.
New Zealand Aviation News editor Peter Clark says given the number of code-sharing alliances going on around the world, let alone airlines going broke or merging, a proposal that provides more choice for the Australasian public should be approved.
As well, given that there's currently seven airlines ferrying passengers between the two countries, and that the Jetstar/Qantas business-duo is an extremely strong competitor within Australia and across the Tasman, there's no reason not to rubber-stamp the code-share arrangement he says.
"I'll be extremely disappointed if the ACCC doesn't approve it," he says.
Clark isn't surprised to find that both Wellington and Canberra airports have dropped their opposition to the Air NZ/Pacific Blue code share proposal.
"Wellington has to be careful how it protests and it is in no position to push too hard," Clark says.
"The yield out of the capital isn't that great for airlines, it's not a high growth area. There is a danger it could lose its international services."
Given that something similar could happen to Canberra Airport, which would mean a lack of direct flights between the two nations' capitals, Clark questions whether politicians would be keen on a cutback in international services.
The Air New Zealand/Virgin offer follows the announcement on Monday that Qantas subsidiary Jetstar has inked a code-sharing arrangement with American Airlines for its trans-Tasman routes.
Businesswire.co.nz
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