The Commerce Commission today received an application by Air New Zealand under s 67 of the Commerce Act 1986. The application relates to the proposed acquisition by Air New Zealand of 25% of Ansett Australia, currently held by TNT, with a call option for a further 25%.
The application allows the Commerce Commission to examine the competition effects of the acquisition and examine any public benefits which might flow from the acquisition.
The effect of the acquisition on domestic air services will be one area of focus for the Commission due to Ansett Australia's involvement with Ansett New Zealand. Air New Zealand has argued that it will 'ring-fence' Ansett New Zealand to ensure that competition in this market will continue.
The process for considering this matter will involve investigation by Commission staff, release of a draft determination setting out the Commission's preliminary view and inviting submissions on issues arising from the application, a conference of interested parties and issuing of a final determination.
The Commerce Act allows 60 working days for consideration of the application. Although this would result in a final determination being released by the Commission on 19 March 1996, the determination may be completed slightly earlier.
Copies of the application will be available from the Commission's Wellington office on Monday morning.
