The Commerce Commission has decided to take no further action after investigating a complaint from Kiwi Airlines Director Ewan Wilson that Air New Zealand's actions against Kiwi Airlines breached the Commerce Act.
Commission Chairman Dr Alan Bollard said that the Commission has analysed information provided by Mr Wilson, and obtained from other sources, and has found no evidence that Air New Zealand breached the Act.
In reaching its decision, the Commission confirmed its earlier determination (Decision 278, April 1996) that no airline has a dominant position in any of the trans-Tasman passenger air services markets.
The Act prohibits a dominant firm using its dominance for an anti-competitive purpose. If Air New Zealand is not dominant, then it cannot breach this section of the Act.
Dr Bollard said that the Act also prohibits contracts, arrangements and understandings that substantially lessen competition. The Commission found here too, that there was no evidence that the Act had been breached.
The Commission concluded that it was unlikely that Air New Zealand had breached the Act because:
· Air New Zealand is not dominant in any of the trans-Tasman passenger air services markets;
· Air New Zealand's pricing was unlikely to be a breach of the Commerce Act; and
· Freedom Air's continued presence, the presence of other strong competitors, and low barriers to entry indicate that the competitive process in the relevant markets is unlikely to have been substantially harmed.
Public copies of the Commission's report are available from reception at its Wellington office, 7th floor, Landcorp House, 101 Lambton Quay.
