Rejection of Air New Zealand-Qantas proposal welcomed

United Future welcomes today's decision by the Commerce Commission and its finding that the Air New Zealand - Qantas proposal is fundamentally inconsistent with the principle of free and open competition.

Leader Peter Dunne and finance spokesman Gordon Copeland said they were not surprised by this decision. "It's been clear from day one that the heart of the proposal represents a collusion between the two airlines to sew up both the New Zealand and trans-Tasman aviation markets to their advantage and to the exclusion of other airlines.

"An outcome along those lines would have been devastating for NZ owned Origin Pacific and would almost certainly have erected an insurmountable hurdle for other potential players such as Virgin Blue or Singapore Airlines. That is not in the interests of the consumer or of New Zealand.

"No doubt this will not be the end of the matter. Qantas and Air New Zealand will continue to present claims that their proposals are meritorious and will work in favour of the overall national interest. The Commerce Commission should continue to firmly resist such overtures.

"In our view the national interest is best served by free and open competition. In any event we believe that Air New Zealand, without Qantas, will have a bright future.

"Because of the recent debacle following the Air New Zealand purchase of the second 50% of Ansett, we can all too quickly forget that Air New Zealand was, in recent memory, regarded as the award winning airline of the aviation industry. Under its new board of management the slimmed down airline has returned to solid profitability and growth.

"It is only a matter of time before its award winning international reputation is quickly re-established," said the two men.

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