Entry of Ansett
Sir,—The Minister of Transport, Mr Prebble (September 13), again uses supermarkets to illustrate his case for letting Ansett buy half of Newmans Air. I think he confuses the issue. Competition is a reason for reduced prices, but not the means. Supermarkets have reduced prices through the economies of scale; their size gives buying power and efficiencies of operation which small shops, acting individually, cannot match. No matter how many little shops compete with each other, they cannot reduce their costs to the level of the big supermarket chains. Size is the means to reduce costs; competition is a reason, but not the only reason. The merger of N.A.C. and Air New Zealand gave economies of scale here, keeping fares lower than they would have been. Adding 40 per cent or more extra capacity to the main trunk market will inevitably reduce Air New .Zealand’s share, destroying much of this efficiency. How will this reduce costs? — Yours, etc., G. B. TULLOCH. September 14, 1986.
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/CHP19860916.2.80.11
Bibliographic details
Press, 16 September 1986, Page 10
Word Count
166Entry of Ansett Press, 16 September 1986, Page 10
Using This Item
Stuff Ltd is the copyright owner for the Press. You can reproduce in-copyright material from this newspaper for non-commercial use under a Creative Commons BY-NC-SA 3.0 New Zealand licence. This newspaper is not available for commercial use without the consent of Stuff Ltd. For advice on reproduction of out-of-copyright material from this newspaper, please refer to the Copyright guide.
Copyright in all Footrot Flats cartoons is owned by Diogenes Designs Ltd. The National Library has been granted permission to digitise these cartoons and make them available online as part of this digitised version of the Press. You can search, browse, and print Footrot Flats cartoons for research and personal study only. Permission must be obtained from Diogenes Designs Ltd for any other use.
Acknowledgements
This newspaper was digitised in partnership with Christchurch City Libraries.
Log in