An Air New Zealand Boeing 777 pictured at Christchurch in 2007. Photo: Bill Mallinson – OPShots Contributor //
Air New Zealand (ANZ) and Virgin Australia will be allowed to continue their trans-Tasman alliance under a draft decision issued by the Australian Competition and Consumer Commission (ACCC) on 10-Jul-2013. But the ACCC has made some significant changes to the routes that will be regulated with capacity and growth conditions.
The Commission has rejected the alliance partners’ request for all minimum capacity conditions to be lifted. Instead the ACCC has increased the total number of routes that will be subject to capacity conditions. In addition the Commission will require both airlines to provide regular key performance data to allow the regulator to better track the public benefits and detriments the alliance delivers over the next three years.
The carriers are also likely to challenge the ACCC’s draft decision to grant re-authorisation of the metal neutral alliance for just three years, rather than the five years requested, placing it at odds with the five year term granted to the rival Qantas and Emirates alliance in Mar-2013.
