Air NZ tells ACCC to reject QF/EK interim bid

Air NZ tells ACCC to reject QF/EK interim bid
By admin


Air New Zealand has issued a fresh appeal to the competition regulator to block Qantas and Emirates' bid for interim authorisation for their alliance.

In a submission lodged late last week, the Kiwi carrier said it would be virtually impossible for its rivals to coordinate on an interim basis across the Tasman after an earlier decision ruled that capacity conditions must be set.

Air NZ told the Australian Competition and Consumer Commission (ACCC): "It is difficult to see how the ACCC could authorise cooperation on the Tasman if that authorisation is to be subject to conditions which are not yet finalised."

Approving the application would allow Qantas and Emirates to set prices and plan future capacity, Air NZ chief strategy networks and alliance officer Stephen Jones said.

"Particularly on the Tasman, such arrangements should not be permitted if the ACCC is not completely comfortable that the detriments have been considered adequately," he declared.

The ACCC last month granted draft approval to Qantas and Emirates for their alliance, but stipulated that capacity conditions on four overlapping Tasman routes must be set in order to alleviate fears of price rises and anti-competitive behaviour.

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