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Air New Zealand / Qantas—Code-share Criteria

Tuesday 4 April 2006 Hansard source (external site)

Brown4. PETER BROWN (Deputy Leader—NZ First) Link to this
to the Minister of Transport

What criteria would his Ministry follow were it to study a potential code-share agreement on trans-Tasman routes between Qantas and Air New Zealand?

HodgsonHon PETE HODGSON (Acting Minister of Transport) Link to this

The criteria are specified in section 9 of the Civil Aviation Act.

BrownPeter Brown Link to this

Does the Minister accept the concerns of the Consumers Institute, which believes that such an agreement would result in higher fares and fewer flights across the Tasman, and will he assure the House that these concerns will be taken into account before the ministry considers the approval?

HodgsonHon PETE HODGSON Link to this

The concerns that the member raises are generically part of the list of criteria in section 9, but I would make the point that code sharing—nearly always—does not include price sharing.

FentonDarien Fenton Link to this

How prevalent are code-sharing agreements among international airlines?

HodgsonHon PETE HODGSON Link to this

They are very common indeed. Successive New Zealand Governments have mandated the negotiation of provisions for code sharing, and such provisions are included in most of New Zealand’s bilateral air services arrangements.

BrownPeter Brown Link to this

Is the Minister aware that when there was a code-sharing arrangement between Air New Zealand and Qantas in the early 1990s, there was much frustration and, dare I say, anger from passengers who would book on one airline and be flown on another and they found that to be out of order with their booking arrangements; and will he assure the House that this will be taken into consideration?

HodgsonHon PETE HODGSON Link to this

I am sure the ministry will take that into consideration. Let us not forget also that code-sharing arrangements are designed primarily to improve benefits to the consumers. For example, it does mean that one can travel on one ticket on more flights across a greater spread during the day.

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