I read today in the NZ Herald that the ACCC (the Australian version of the Commerce Commission) that they do not support the planned alliance between AirNZ and Virgin Blue.

I have one word in response: GOOD. It was never a good idea (I blogged about it being such a bad idea here) for anyone except maybe Virgin Blue and to a lesser degree AirNZ.  The consumer would not benefit.

ACCC Chairman Graeme Samuel says:

These routes account for around one quarter of passenger traffic in the trans-Tasman market. More than a million passengers a year could be adversely affected if competition between the two airlines was removed.

Yep, exactly.  Enuf said.

It’s clear that for real competition THREE is the minimum.  Voda/Telecom in the mobile space proved that.  (It took 2Degrees to move prices significantly).  Two get rather too cozy IMHO.

Black and White Version: We need competition in the NZ and Trans-Tasman airspace.  Less airlines isn’t the way to achieve this.

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