Minister eyes Air NZ, Qantas codeshare
Consumer Affairs Minister Kris Faafoi has promised to take action if a deal between Air New Zealand and Qantas Airways disadvantages customers.
On June 1 the two airlines announced they would 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.
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.
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 deal 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.
Forsyth Barr head of research Andy Bowley said he did not expect the codeshare to have a ‘‘meaningful impact’’ on domestic fares in New Zealand. The number of Qantas passengers using connecting Air New Zealand services would be low, he said.
There could be objections from airports and other trans-Tasman airlines because the codeshare arguably weakened airline competition on the Tasman, he said.
New Zealand Airports Association chief executive Kevin Ward said it would watch how the deal unfolded ‘‘very closely’’ but did not have a view at this stage.