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Post by corsair67 on Nov 16, 2006 10:53:36 GMT 12
Well I guess this isn't really a surprise after all that has been said and done over the past few months.
From The Australian.
Air pact won't fly Steve Creedy, Aviation writer November 16, 2006.
THE long-running trans-Tasman airline wars are set to continue after Air New Zealand and Qantas yesterday dropped their bid to join forces on the market.
The airlines told the Australian Competition and Consumer Commission and the New Zealand Ministry of Transport they were withdrawing an alliance bid that would have seen them dominate the Tasman with an 80 per cent market share and save about $20 million each per year. The move will mean continued overcapacity on the route - at least for now - could see a more aggressive push by Jetstar into new Zealand as Qantas seeks to cut costs.
Air New Zealand has warned several times it would be forced to slash flights across the Tasman if it were unable to get a deal.
Deutsche Bank analyst Jason Bloom said Air New Zealand also had the option of looking at Virgin Blue as a potential partner. He said Air New Zealand would be able to provide feed options for Virgin, help with long-haul flights and sponsor its potential entry into the Star Alliance.
The airlines were responding to a recent ACCC draft decision rejecting their proposal to co-ordinate routes, aircraft, schedules and fares. The ACCC said the deal would give the airlines too much market power for too few benefits and fundamentally change the competitive process on the trans-Tasman route.
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