Minister promises fair deal for customers in Air New Zealand and Qantas codeshare
Qantas and Air New Zealand will begin their codeshare in October.
The consumer affairs minister has promised to take action if a deal between Air New Zealand and Qantas disadvantages customers.
On June 1 the two airlines announced they were partnering to codeshare on 115 domestic routes on both sides of the Tasman.
From October 28 Air New Zealand passengers flying to Australia will be able to seamlessly connect to Qantas domestic services and Qantas passengers landing in New Zealand will be able to easily transfer to Air New Zealand's domestic routes.
A Commerce Commission spokeswoman said it was not involved in codeshare approval. That was undertaken by the Ministry of Transport under the Civil Aviation Act.
READ MORE: Trans-Tasman rivals Air NZ and Qantas announce codeshare agreement on domestic services
There were parties that may have concerns about the codeshare and make submissions on it, she said.
Commerce and Consumer Affairs Minister Kris Faafoi said he was not consulted on the codeshare nor did he expect to be.
"I was advised this was occurring just prior to the public announcement," Faafoi said.
Commerce and Consumer Affairs Minister Kris Faafoi says he will act if the codeshare reduces competition.
He was committed to ensuring customers got a fair deal in New Zealand, he said.
"I will be watching developments and am keen to see options and competition remain."
He had asked officials for a briefing given customer interest in the deal and would "act to protect the consumer and the pursuit of honest business", he said.
Regional Economic Development Minister Shane Jones said he was "genuinely surprised" when the codeshare was announced.
He said he was seeking more information from Faafoi.
"I remain utterly vigilant ensuring that the regions are not short-changed through bad connectivity," Jones said.
Shane Jones says the Commerce Commission should be watching to ensure there was no anti-competitive behaviour resulting from the codeshare.
Forsyth Barr head of research Andy Bowley said he did not expect the codeshare to have a "meaningful impact" on domestic airfares in New Zealand.
The number of Qantas passengers that would use connecting Air NZ services would be low, he said.
"The bigger issue will be the viability of Virgin's trans-Tasman services."
Earlier this year Air New Zealand announced it was ending its eight-year codeshare partnership with Virgin.
There have been suggestions Virgin's budget carrier Tigerair could enter the New Zealand market.
Bowley said he did not expect any response from Jetstar to the codeshare because it was owned by Qantas.
There could be objections from airports and other trans-Tasman airlines to the codeshare because it arguably weakened airline competition on the Tasman, he said.
Also, airports liked competition as it drove lower airfares, which stimulated passenger demand, he said.
NZ Airports Association chief executive Kevin Ward said it would be watching how the codeshare unfolded "very closely".
It did not have a view on the codeshare at this stage, he said.
- Stuff
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