- Dec 6, 2004
smh.com.au said:'Devil in plan' of Air NZ Qantas tie up
March 30, 2006 - 7:39AM
Rival airlines say the devil will be in the detail of a secret plan reportedly hatched by Air New Zealand and Qantas to merge their trans-Tasman operations.
A Dominion Post report on Thursday said the pair were close to a deal that would see them work more closely, code-sharing flights in a bid to stave off record fuel costs and huge losses on the route.
Tony Marks, chief executive of rival Pacific Blue, said the move would give Air NZ and Qantas an 80 per cent share of the market. The airlines were likely to offer fewer, larger flights, lessening competition and making price hikes inevitable.
"This particular mechanism has been used before and looks like it is being resurrected from the graveyard," Mr Marks told NZPA.
© 2006 AAP