Posts tagged Competition
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.