Airlines decision due next month

By CHRIS DANIELS

Air New Zealand and Qantas should know next month if their anti-competitive marriage plans will get the blessing from regulators.

The Commerce Commission yesterday announced details of its timetable for deciding whether to approve the rivals' alliance plans.

It says it now expects to issue a draft determination in the first week of April, which will cover two aspects of the planned deal.

Firstly, it will say whether it is inclined to give authorisation to Qantas for it to spend up to $550 million buying up to 22.5 per cent of the voting shares of Air NZ.

Then it will comment on the two airlines' application to put in place a "strategic alliance arrangement' and other, anti-competitive agreements. This relates to the "joint airline operation" they want to set up, which, managed by Air NZ, would control all flights by either airline into, out of and within New Zealand.

The commission will then ask for a second round of submissions, with a deadline of May 9.

It plans to publish its final decision at the end of June, but before that, will hold a conference in Wellington, from May 20 to May 23. This meeting is designed to allow oral presentations to be made, based on submissions already received.

Australian regulators are working to a similar timetable for making a decision on the alliance proposal.

The first deadline for submissions to the Australian Competition and Consumer Commission (ACCC) on the alliance has now passed, with 64 now posted on its website.

Chairman Allan Fels has said that a final decision on the application was expected to be made toward the middle of the year.