Domestic same day airfreight market open to more competition
Published10 Feb 1999
A settlement between the Commerce Commission, Ansett Express couriers and the airline Ansett New Zealand is intended to reduce the barriers to entry into the domestic same day airfreight market.
On 1 October 1997 Air New Zealand and Ansett Australia merged their respective domestic airfreight operations, First Express and Ansett New Zealand Airfreight, to form Ansett Express.
The Commission's Commerce Act Manager, Geoff Thorn, said that Ansett Express now has, in effect, exclusive use of both Air New Zealand and Ansett NZ for domestic same day airfreight, and this was the result of the above merger.
Under the settlement, the exclusive contract between Ansett Express and Ansett NZ will be re-negotiated. Mr Thorn said that, in the Commission's opinion, without re-negotiation, the contract has the likely effect of substantially lessening competition in the domestic same day airfreight market.
It is intended that with the contract re-negotiated, any business wanting to enter a commercial, same day airfreight forwarding contract, will be able to negotiate with either Ansett NZ or Air New Zealand for cargo belly space on aircraft on scheduled flights.
Ansett NZ and Ansett Express ceased to be related companies following the sale of Ansett NZ by Ansett Australia in 1996.
Prior to the merger which formed Ansett Express, there was competition with Air NZ owning its own freight forwarder, First Express, and Ansett NZ working with its associated freight forwarder, Ansett New Zealand Air Freight.
After the merger, Ansett Express had, in the Commission's view, effectively exclusive use of the cargo belly space of Air New Zealand and, arising from a pre-merger contract, exclusive use of Ansett NZ's belly space.
It is this situation that is being addressed by having the exclusive contract between Ansett Express and Ansett NZ renegotiated so that the barriers to entry to the domestic same day airfreight market are reduced.
