Air New Zealand disappointed with ACCC decision

Air New Zealand has received with disappointment the decision from the ACCC announced today, declining approval of an arrangement with Air Canada. While we have yet to carefully analyse the decision, the outcome is in stark contrast to trends in Europe, USA and Asia where airlines are increasingly consolidating in response to toughening economic conditions dramatically affecting the industry.

It also contrasts with approvals gained by Qantas in respect of collaboration with South African Airways and Japan Airlines on routes with equivalent levels of competition.

The continuation of many services operated by airlines is increasingly under threat as demand falls and this stance by the ACCC is of concern. Air New Zealand will discuss with Air Canada whether this decision should be appealed to the Australian Competition Tribunal.