KEY POINTS:
Air New Zealand could be in for a long wait if it wants to appeal against the veto of its proposed code-share agreement with Qantas by Australia's competition watchdog.
The airline's options include requesting a conference with the Australian Competition and Consumer Commission (ACCC) to present some alternative points of view; going straight to the Australian Competition Tribunal (ACT), which reviews the ACCC's decisions; or withdrawing from the process altogether.
But the last time it went to the ACT - for a review of the draft of its proposed alliance with Qantas - it took nine months to get a decision.
The ACCC rejected the proposed agreement - which would have meant Air New Zealand and Qantas could stop competing for passengers on the transtasman route - in a draft ruling on Friday.
The airline was hoping it would save tens of millions of dollars on what it claimed was an unprofitable route.
It hinted it would be forced to cut transtasman flights if the decision was final, but wouldn't comment yesterday except to say it was evaluating the options before deciding its next step.
The airline could push ahead and ask the New Zealand Ministry of Transport for approval. The ministry was to make the decision instead of the Commerce Commission.
But as Infratil chief executive Tim Brown points out: "What's the point if you've still got to get approval from the ACT after that?"
A major stakeholder in Wellington Airport, Infratil was a vocal opponent of the proposed agreement, calling it a "cartel dressed up as a code-share agreement".
Brown said there was "no evidence" the route was unprofitable.
"This agreement was never about reducing losses, it was about increasing profits.
"There's no evidence of any losses on the transtasman route."
The number of passengers and average fare prices for flights from Wellington across the Tasman showed the numbers were good by Infratil's calculations, Brown said.
Infratil also opposed the fact that the Ministry of Transport was to have been the decision-maker, when the Government was an 82 per cent shareholder in the airline.
Forsyth Barr head of research Rob Mercer estimated the airline was losing about $30 million a year on the transtasman route.
Shares in Air New Zealand were trading at $1.43 yesterday, up 5c.
