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NZ agents oppose code share
New Zealand travel agents have spoken out against a proposed codeshare arrangement between Air New Zealand and Qantas, saying it will increase trans-Tasman airfares.
The Travel Agents Association of New Zealand (TAANZ) made submissions to the Government, saying it did not have the jurisdiction to authorise such arrangements.
Former Transport Minister Pete Hodgson is dealing with the application and a decision is expected before Christmas.
TAANZ said the Civil Aviation Act was never intended to provide airlines with a protection from the anti-competitive provision of the Commerce Act.
It argued the deal would, if approved, increase airfares and dramatically reduce competition.
“Given the potential impact on consumers and the New Zealand economy, TAANZ’s preference is that the application be referred to the Commerce Commission,” TAANZ chief executive Paul Yeo said.
Qantas and Air NZ together accounted for about 80 per cent of passengers flying across the Tasman, Mr Yeo said.
“We also don’t see any of the other airlines currently flying the Tasman being able to effectively compete with the partnership because they don’t have the capacity, or for new airlines entering the market to provide effective competition.”
TAANZ represents 511 travel agencies in New Zealand.
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