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Wellington Airport calls for delay in Tasman ANZ QF code share decision
The news that Emirates is controlled by competition restrictions on the Tasman has resulted in Wellington International Airport calling for the decision on the proposed codeshare agreement between Air New Zealand and Qantas to be put on hold.
Air New Zealand and Qantas’ case which is currently being considered by the New Zealand Transport Ministry is substantially based on Emirates as the third-largest competitor on the Tasman, limiting price increases that may happen as a result of the codeshare.
It has recently been revealed though that the NZ Ministry has become concerned at the low numbers of passengers flying with Emirates beyond Australia to the Middle East and vice versa, with the majority of passengers apparently travelling between Australia and NZ and vice versa only, not to and from the Middle East, the basis of the agreement to allow Emirates to fly the Tasman.
Rob Fyfe CEO of Air New Zealand is regularly reported accusing Emirates of selling trans Tasman tickets too cheaply and impacting on ANZ’s ability to charge ane economically viable price.
The decision, which is due shortly, is heavily based on Emirates and Australian owned but Christchurch based airline Pacific Blue keeping fares under control.
Wellington Airport lawyer Grant David said the NZ Government’s advisor, Dr Tretheway had not been aware of the competitive restrictions placed on Emirates, therefore his analysis was unreliable and could not be the basis of the NZ Government’s decision.
A report by The Mole
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