The Commerce Commission could investigate a buy-in deal between Auckland International Airport and Queenstown Airport, but a decision to overturn the agreement would be rare and could take years, a leading competition lawyer says.
Air New Zealand launched an aggressive attack on Auckland Airport on Friday after the airport company
agreed to buy just under 25 per cent of Queenstown Airport for $28 million.
The national carrier labelled the deal "shoddy" and criticised Auckland Airport for conducting business behind closed doors.
Air NZ has written to the commission asking for its views on the deal and whether it "looked into it" before the alliance was signed.
The airline has also said it would support an investigation into the deal by either an Ombudsman or the Office of the Auditor-General.
The commission yesterday did not say whether it was investigating.
Minter Ellison Rudd Watts partner Andy Matthews said the main issue was whether the deal would lessen competition in its relevant market, opening the way for ticket price rises.
He said a 25 per cent share would not give Auckland Airport huge amounts of influence but there was talk that it could increase its stake.
Air NZ is worried Auckland Airport will increase landing fees in Queenstown and effectively extend the monopoly it holds in Auckland to the country's top tourist destination.
Matthews said on the surface the airport and Air NZ, as an airline carrier, operated in different markets.
He said Air NZ's proposal to get a consortium of airlines together to place a bid, as an alternative to Auckland Airport's buy-in, was a type of vertical integration that had been seen in ports overseas but not airports.
Air NZ's concern that the alliance might bump up landing fees could be balanced by rival airlines' concern that Air NZ would give its fleets preferred slots, especially during seasonal highs, as a key shareholder, he said.
Matthews said the commission could not overturn the deal, only the courts could, and for that to happen the Crown would have to prove that the alliance was detrimental to competition and devalued price and quality.
Auckland Airport said its 25 per cent stake could be raised to between 30 and 35 per cent, after approval from Queenstown Lakes Council, any time up to next June 30.
Auckland Airport shares closed up 1c at $1.97 yesterday. Air NZ shares closed up 1c at $1.12.
