Air New Zealand awaits court's decision on Qantas alliance appeal

Airline Industry Information, August 3, 2004

AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD

Air New Zealand must wait to hear whether its appeal against a competition commission ruling that denied its proposed alliance with Australian airline Qantas Airways has been successful.

The month-long appeal process finished in New Zealand's High Court on 2 August 2004 with the presiding justice Rodney Hansen left to decide whether Qantas can buy a 22.5% stake in the airline for NZD550m.

As part of the alliance proposal the two airlines want to coordinate their flights between Australia and New Zealand which the airlines say would improve efficiency and profits without monopolising the market.

New Zealand's competition commission said that it still thought the alliance would significantly reduce competition in the area even if the move did produce an initial drop in ticket prices, reported The Associated Press.

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