New Zealand Commerce Commission delays decision on Air New Zealand/Qantas alliance

Airline Industry Information, Sept 25, 2003

AIRLINE INDUSTRY INFORMATION-(C)1997-2003 M2 COMMUNICATIONS LTD

New Zealand's commercial regulator has delayed a ruling on the proposed alliance between Air New Zealand and Australian carrier Qantas Airways.

Under the proposal, Qantas would pay NZD550m for a 22.5% stake in Air New Zealand, while Air New Zealand would take control of both carrier's services to, from and within New Zealand.

The Commerce Commission has reportedly delayed the decision by up to a month, until 24 October 2003. The delay has been endorsed by both airlines.

However, the agency's Australian counterpart has already ruled against the proposal, claiming that it would be anti-competitive and would raise airfares, reported The Associated Press.

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