Air New Zealand decision appeal

Press, 2 July 1985, Page 26

Air New Zealand decision appeal

PA Wellington Air New Zealand has appealed against a Commerce Commission decision refusing permission for it to acquire 77 per cent of the share capital of Mount Cook Group, Ltd. In the Wellington High Court yesterday the Chief Justice, Sir Ronald Davison, began hearing the airline’s appeal against the Commerce Commission decision of June 6. Counsel for Air New Zealand, Mr David A. R. Williams, said the airline wanted orders reversing the commission’s decision and granting consent to the application. He said Air New Zealand contended the commission exercised its discretion wrongly in refusing to grant consent.

The majority ruling of the commission was in flat conflict with the unanimous decision of the commission

refusing an application from the Goodman Group, which sought a 47 per cent interest in Mount Cook, Mr Williams said.

He said Air New Zealand’s application to the Commerce Commission said the activities of Air New Zealand and Mount Cook would be complementary. The thrust of the application was that wholesaling activities of both companies would be enhanced if the application was granted, Mr Williams said.

He said it was not a merger where Mount Cook would disappear or be absorbed, and no redundancies

were proposed. The proposals were de- * signed to increase profits from both companies. The appeal is expected to end today. Mr Williams, with him Mr Richard McGrane, appeared for Air New Zealand. The Commerce Commis- — sion was first respondent " and was not represented. The second respondent, the Examiner of Commercial Practices, was represented by Mr Tom Gault, Q.C., Ms Jane Cunliffe, and ■ Mr Alan Lear. Mr Tony Keesing was - counsel assisting the court. ’ (Proceeding).