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Origin Pacific accuses ANZ of unfair competition
Leithen Francis, Singapore (15Jun06, 07:50 GMT, 454 words)
Origin Pacific Airways has accused Air New Zealand (ANZ) of “predatory pricing” and this month plans to refer the matter to New Zealand’s competition watchdog.
The small New Zealand regional carrier says in a statement that within the next fortnight it “will formally request the Commerce Commission investigate” ANZ’s alleged “predatory pricing”.
Origin Pacific claims ANZ is trying to price it out of the market “to regain its monopoly status on [regional] domestic routes”.
The statement adds: “It price gouges those regions where it has an absolute monopoly to fund predatory pricing practices in the 10 centres served by Origin Pacific.
“ANZ complains about unfair competition on trans-Tasman routes [between Australia and New Zealand] and is seeking support for” a codeshare agreement with Qantas Airways.
But on regional domestic routes it “goes to the expense of leasing aircraft” from Vincent Aviation to “take on its only real competitor on regional services”.
Origin Pacific says ANZ used the Vincent Aviation aircraft to launch competing services on the Hamilton-Nelson and Palmerston North-Nelson routes.
Vincent Aviation is a New Zealand charter airline which operates mostly Beech 1900s and Cessna aircraft but also has at least one Bombardier Dash 8-100.
Origin Pacific also claims that “last week ANZ announced ‘special’ fares on three” other sectors Origin Pacific serves: Wellington-Blenheim, Auckland-Nelson and Nelson-Christchurch.
“This is the pattern. ANZ attempts to squeeze out the competition on routes” served by Origin Pacific “but you pay through the nose if you live in Whangarei or Invercargill or any other centres not served by Origin Pacific”, says the small regional airline.
Origin Pacific says the Commerce Commission should “unbundle [ANZ’s] monopolistic approach” so there can be “fair competition”.
ANZ today responded by saying in a statement it entered the Hamilton-Nelson and Palmerston North-Nelson routes in response to market demand.
The Star Alliance carrier says it “has been a strong supporter of Origin Pacific” over the years and was “one of the many creditors who effectively subsidised the airline by writing off substantial debts after it almost went out of business a couple of years ago”.
ANZ adds: “It is disappointing to see Origin Pacific indicating it wants to waste” the commission’s and “everyone’s time”.
In May 2004, Origin Pacific gained a financial reprieve from the majority of its creditors which saved the airline from bankruptcy.
At the time the carrier had unsecured debts of NZ$11.8 million ($7.3 million) and about 340 unsecured creditors.
In early 2004 the carrier had 15 aircraft: two ATR 72s, five BAe Jetstream 41s, three Jetstream 32s, three Jetstream 31s and two Fairchild Metroliners.
But it has since restructured its fleet by returning the two ATR 72s on lease and now is standardising its fleet around the Jetstream 41.
Source: Air Transport Intelligence news
Leithen Francis, Singapore (15Jun06, 07:50 GMT, 454 words)
Origin Pacific Airways has accused Air New Zealand (ANZ) of “predatory pricing” and this month plans to refer the matter to New Zealand’s competition watchdog.
The small New Zealand regional carrier says in a statement that within the next fortnight it “will formally request the Commerce Commission investigate” ANZ’s alleged “predatory pricing”.
Origin Pacific claims ANZ is trying to price it out of the market “to regain its monopoly status on [regional] domestic routes”.
The statement adds: “It price gouges those regions where it has an absolute monopoly to fund predatory pricing practices in the 10 centres served by Origin Pacific.
“ANZ complains about unfair competition on trans-Tasman routes [between Australia and New Zealand] and is seeking support for” a codeshare agreement with Qantas Airways.
But on regional domestic routes it “goes to the expense of leasing aircraft” from Vincent Aviation to “take on its only real competitor on regional services”.
Origin Pacific says ANZ used the Vincent Aviation aircraft to launch competing services on the Hamilton-Nelson and Palmerston North-Nelson routes.
Vincent Aviation is a New Zealand charter airline which operates mostly Beech 1900s and Cessna aircraft but also has at least one Bombardier Dash 8-100.
Origin Pacific also claims that “last week ANZ announced ‘special’ fares on three” other sectors Origin Pacific serves: Wellington-Blenheim, Auckland-Nelson and Nelson-Christchurch.
“This is the pattern. ANZ attempts to squeeze out the competition on routes” served by Origin Pacific “but you pay through the nose if you live in Whangarei or Invercargill or any other centres not served by Origin Pacific”, says the small regional airline.
Origin Pacific says the Commerce Commission should “unbundle [ANZ’s] monopolistic approach” so there can be “fair competition”.
ANZ today responded by saying in a statement it entered the Hamilton-Nelson and Palmerston North-Nelson routes in response to market demand.
The Star Alliance carrier says it “has been a strong supporter of Origin Pacific” over the years and was “one of the many creditors who effectively subsidised the airline by writing off substantial debts after it almost went out of business a couple of years ago”.
ANZ adds: “It is disappointing to see Origin Pacific indicating it wants to waste” the commission’s and “everyone’s time”.
In May 2004, Origin Pacific gained a financial reprieve from the majority of its creditors which saved the airline from bankruptcy.
At the time the carrier had unsecured debts of NZ$11.8 million ($7.3 million) and about 340 unsecured creditors.
In early 2004 the carrier had 15 aircraft: two ATR 72s, five BAe Jetstream 41s, three Jetstream 32s, three Jetstream 31s and two Fairchild Metroliners.
But it has since restructured its fleet by returning the two ATR 72s on lease and now is standardising its fleet around the Jetstream 41.
Source: Air Transport Intelligence news
