Kiwi airport owner says Aussie Government cannot decide the future of trans-Tasman air travel.
The majority shareholder in Wellington Airport in New Zealand, Infratil, a leading critic of Qantas and Air New Zealand’s plans to set fares and schedules jointly, says that the proposed deal would lead to less competition.
The company also said it has sought specialist legal advice which said that New Zealand’s transport minister had far more limited powers to co-approve the deal than might be thought.
Infratil is also concerned that the NZ Government appears to be waiting until the ACCC in Australia issues its determination, effectively meaning that the Australian body, which does not have a mandate to protect Kiwi consumers, will in effect determine the fate of New Zealand travellers.
The legal advice received by Infratil, said that significant parts of the agreement could not be approved by the transport minister because they came under the Commerce Act and that the Minister had to consider the public interest and competition effects on consumers in making a decision.
Report by John Alwyn-Jones from ATE 2006
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