Tasman airlines merger floated

Press, 4 March 1988, Page 1

Tasman airlines merger floated

By

PETER LUKE,

political reporter i An Australasian mega-carrier taking on the big American Pacific airlines was the prospect raised by Australia's Federal Transport Minister, Senator Gareth Evans, yesterday. ; He floated the long-term prospect of a merger between Air New Zealand and its Australian counterpart, Qantas. j The international trend towards bigger carriers meant it would be foolish to rille out this possibility, he said. | But a somewhat startled New Zealand Minister of Transport, Mr Jeffries, said it was premature to discuss a merger. I This had formed no part of his two-day discussions with Mr Evans, which ended yesterday 1 .

The question of a merger ; arose (out of questions directed to | both Ministers on when Air New i Zealand would be allowed access j to the Australian domestic mar-1 ket. | Mr (Jeffries said this had not; been 'part of discussions, which were! confined to the narrower; issue; of the (Air Services Agree-; ment; covering international; flights. I | ! Mr Jeffries indicated, however,' that ( domestic landing righto would not beja live issue until! 1990, when deregulation of the Australian market took effect. ['ll | Mr Evans said that Air New Zealand was not discriminateq against, as Qantas was also not allowed ! into the; Australian domestic market. I