Fork in flightpaths of alliance plan

By CHRIS DANIELS aviation writer

The Air New Zealand-Qantas alliance plan appears to be heading down separate flightpaths on either side of the Tasman.

On this side of the ditch, the Commerce Commission last week granted the airlines' request for an extension to their approval process, giving Air New Zealand and Qantas time to fine-tune their arguments.

But in Australia big political guns have been wheeled out in support of the deal, which is looking unlikely to win favour from competition regulators.

Qantas has asked the Australian Competition and Consumer Commission to fast-track its decision - which is expected to be a rejection - so it can appeal to the Australian Competition Tribunal.

The airlines are reported to be working on a new set of undertakings designed to convince regulators that Virgin Blue will be given scope to compete properly on New Zealand domestic routes and across the Tasman.

Virgin Blue commercial head David Huttner said the airline "must have access to comparable facilities at competitive prices at the times of day when the public prefers to travel".

If not, it would be impossible for it to offer New Zealanders the same type of low-fare competition that existed in Australia, as it would have nowhere to park its aircraft or check in passengers.

As long as Qantas and Air New Zealand could satisfactorily address the anti-competitive issues, Virgin Blue had no intention of standing in their way, Huttner said.

New South Wales Premier Bob Carr is supporting the alliance deal, as is Deputy Prime Minister and Transport Minister John Anderson.

Airlines globally were having a hard time, said Anderson, and he feared Qantas' future would be less secure if the deal with Air New Zealand was blocked.

"We want to make certain that our aviation sector in this region - in the interest of jobs in Australia and New Zealand and in the region - is given the best possible shot."

While the Commerce Commission has not yet suffered the kind of criticism that its Australian counterpart endured, it has managed to anger a group of local business people opposed to the alliance plan.

Spokesman Tim Brown, who is a senior executive at Infratil, the company that owns 66 per cent of Wellington Airport, said the group was disturbed by the apparent influence the airlines had over the Commerce Commission's decision to extend the time for submissions at the behest of the airlines.

"The Commerce Commission should not change its timetable for the conference on its draft determination simply to suit the airlines' convenience, or to allow them time to try to bolster their failing case," he said.

"Qantas and Air New Zealand had ample time to properly prepare their applications before approaching the commission. They do not have to be accorded extraordinary tolerance now by the commission simply because things have gone so wrong for their case."