Airline deal might help N.Z. cause

Press, 4 August 1987, Page 50

Airline deal might help N.Z. cause

PA Wellington Ansett’s purchase of the Australian domestic carrier, East-West Airline, Ltd, may improve Air New Zealand’s chances of gaining entry to the Australian market, said the New Zealand airline’s public affairs manager, Mr Bob Wallace at the week-end. It was announced in Sydney that T.N.T., Ltd, and News Corporation, Ltd, the owners of Ansett, had bought the Perthbased domestic carrier. Ansett owns half of Ansett New Zealand, which recently began flights on the New Zealand domestic main trunk

in competition with Air New Zealand.

Since Government approval was given to the entry into the market of Ansett New Zealand, Air New Zealand has campaigned strongly for entry to the Australian domestic market.

This is blocked by Australia’s “two-airline” policy, which preserves the main trunk routes for Ansett and the Govern-ment-owned Australian Airlines.

Ansett’s purchase of East-West was a clear move to preserve the duopoly in Australian aviation, Mr Wallace said. While it was widely ru-

moured last year that Air New Zealand would attempt to burst into the Australian market by a deal with East-West, Mr Wallace said the New Zealand flag carrier had formed no such plans. He labelled the EastWest purchase an “anticompetitive” move and said it was “bad news for the Australian passenger.” However, Mr Wallace said Air New Zealand hoped the Ansett moves to stifle possible competition would backfire, and push Australian aviation authorities towards allowing a freeing up of Australian skies.