Air NZ and Qantas ask for time to make case

By CHRIS DANIELS

Air New Zealand and Qantas have asked the Commerce Commission for extra time to assemble their arguments in favour of an alliance.

The commission announced yesterday that the airlines had asked for more time to make submissions on its draft determination.

Issued this month, the determination was a comprehensive rebuttal of Air New Zealand's arguments for permission to allow Qantas to buy up to 22.5 per cent of its shares for $550 million.

All flights to, from and within New Zealand would be controlled through a joint operating agreement between the airlines.

Air New Zealand and Qantas said that if they were not allowed to join forces, a "war of attrition" would begin in the New Zealand domestic aviation market, which could lead to the demise of Air New Zealand.

The commission rejected this argument on several grounds.

Its Australian counterpart, the Australian Competition and Consumer Commission, similarly rejected the application in a draft decision, saying it would be "highly anti-competitive" and offer little benefit.

Neither the airline nor the Commerce Commission will say how much of an extension was requested.

The commission is expected to make a decision on the airlines' request within two days.

Submissions are now due to close on May 9.

A conference where all interested parties can make submissions before a panel is due to be held on May 20.