Qantas becomes Kiwi kid

By Graeme Kennedy

Friday 1st November 2002

Qantas' registration of its domestic airline as an all-New Zealand company will simplify its operation, cut costs and provide future ownership options to satisfy competition issues if the Air New Zealand-Qantas deal goes ahead.

The carrier has moved from an Australian to a New Zealand operator's certificate as Jet Connect the company it set up last year to employ cabin crews and its five Boeing 737s have been transferred from the Australian to the New Zealand register.

As a company separated from its parent the carrier could more easily be sold off or continue flying in a joint venture with another operator, perhaps Virgin Blue, to maintain domestic market competition if Qantas gets the 20-25% it is seeking in Air New Zealand.

Although it is unusual for a domestic airline in one country to be controlled by the civil aviation regulations of another, Qantas has been flying here under a temporary foreign operator's approval in which all its oversight and regulatory compliance have been run by Australia's Civil Aviation and Safety Authority (Casa).

Casa has regularly sent its teams here to audit Qantas under Australian aviation regulations.

Technically, Qantas could have continued under its temporary approval but questions were being asked by some sections of the industry, including Air New Zealand, and the carrier felt it was time to tidy up the operation.

Casa rules differ from New Zealand's and by localising regulatory procedures Qantas can operate more simply and at lower cost.

The carrier will match Air New Zealand's new range of cheaper fares introduced today and will expand its trunk schedules from Thursday next week.

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