Air New Zealand has said it is “flabbergasted and astounded” at a draft decision to block its proposed codeshare with Qantas on the Tasman.
Chief financial officer Rob McDonald described the ruling by the Australian Competition and Consumer Commission as “misguided” is riddled with “inconsistencies”.
“Although we have only had a short amount of time to review the determination’s contents we have already spotted flaws and we will be raising these with the ACCC before a final determination is made,” he said.
“It the ACCC sticks with this determination – and let’s remember it has been proven to change its mind – it is potentially forcing Air New Zealand to make capacity and route decisions that will come at a significant cost to consumers. We cannot continue to fly the equivalent of 43 empty aircraft across the Tasman daily.”
He added it was disappointing that the ACCC has chosen to accept arguments put forward by “monopolists” such as Wellington Airport.
The ACCC said a codeshare would “fundamentally change the competitive process on the trans-Tasman”.
It accepted that Virgin Blue and Emirates would continue to constrain Air NZ and Qantas but added the competing airlines “face impediments to further expansion” and “will not replace the competitive dynamic that will disappear under the agreement”.
