Jeffries rejects Ansett leverage

Press, 27 April 1989, Page 6

Jeffries rejects Ansett leverage

By

PETER LUKE

in Wellington Ansett New Zealand had demanded part of Air New Zealand’s Tasman aviation rights as the price for remaining flying in this country, the Minister of Civil Aviation. Mr Jeffries, said yesterday. The Ansett ultimatum was made public on April 7, the eve of a scheduled two-week East Asian trip by Mr Jeffries. Left unclear in that ultimatum, and in subsequent talks between the airline and the Government, was precisely what prize Ansett sought to remain flying. But Mr Jeffries told Parliament on his return from East Asia that he rejected any accusation that Ansett could use leverage to secure concessions. "In fact, the experience of the last week has demonstrated that its threat to leave New Zealand unless it was granted Air New Zealand’s share of trans-Tasman rights completely failed.”

Mr Jeffries said liberalisation of the Tasman market could only occur with the agreement of the Australian Government. After Ansett's oral submission to the Government, Tasman aviation talks between the two Governments, scheduled for November, had been brought forward. New Zealand officials met their Australian counterparts yesterday for the first day of preliminary discussions. The long-awaited full report by the Commerce Commission into the Air New Zealand sale is expected today.