Air N.Z. bid to stop consortium falters

Press, 26 July 1986, Page 8

Air N.Z. bid to stop consortium falters

PA Wellington Air New Zealand has lost the first round of its High Court battle against the Newmans-Ansett-Bri-erley consortium,, which plans a new domestic airline.

Air New Zealand’s application for an interim injunction against the Overseas Investment Commission, and a judicial review, were rejected yesterday by the Chief Justice, Sir Ronald Davison.

But an airline spokesman said an appeal against the decision had already been lodged and was likely to be heard in the Court of Appeal on Wednesday. Air New Zealand sought an interim injunction, pending a judicial review, preventing the commission from making a decision on the new consortium airline. The new airline needs commission approval to operate.

Air New Zealand

argued for a day and a half in the High Court at Wellington this week that the commission had allowed submissions on the Newmans application, but then had unfairly denied the information upon which to base them.

Delivering his decision yesterday, his Honour said that under the legislation covering the commission, the airline had no right to information on the Newmans application, and no right to be heard.

The commission could make its own rules acting only on Government policy and had no regular practice of supplying information to other interested groups.

Air New Zealand had no reasonable expectation that it would receive information on the planned Newmans airline operation, he said.

Operating under its own legislation, the commission differed from others in that it made no notification of applications, did

not call for submissions, and seldom allowed them. Most of its dealings were confidential. Air New Zealand was not a party to the commission’s deliberations, it was simply a competitor trying to prevent competition, his Honour said. The airline had argued the commission lacked the specialist knowledge to decide on the Newmans case, but the commission had argued that it could get all the help it needed.

“Who am I to say the commission is wrong in that view?” his Honour said.

Air New Zealand had the right to a judicial review only if it had the right to the commission’s informatibn. His Honour said his view was that the airline did not have that right and did not qualify for a review. ’The chances of review being successful for Air New Zealand were unlikely, he said.