Ansett fallout likely to rock Air NZ

By DANIEL RIORDAN aviation writer

If Ansett Mark II does not get off the ground its demise will be a blow to Air NZ and Star Alliance, the world's biggest airline grouping.

In the confusing world of aviation since September 11, the still-fragile flag-carrier needs its friends as never before - especially its 13 fellow members of Star Alliance.

Only this week, Star confirmed Ansett Mark II would become an alliance member from Friday.

Ansett retains many passenger links to Air NZ and anything that helped it in what promised to be a ferocious battle against Qantas and Virgin Blue would have also boosted the fortunes of Air NZ.

Of greater long-term significance for Air NZ is Star's contention that it has found a way around US antitrust regulations that will allow it to offer discounted air travel deals to major corporate customers.

Star, whose members include United Airlines and Lufthansa, says it has the approval of competition authorities in Brussels and Washington.

"We have found a way that is perfectly legal and safe to bypass the competition rules," Star vice-president (commercial) Horst Findeisen told aviation journalists in Bangkok.

Those rules forbid discussions on pricing.

Mr Findeisen declined to divulge details of the scheme, but said Star hoped to sign up five multinationals in a pilot scheme beginning early next year.

Star will promote the scheme on the basis that companies will find it easier to deal with one point of contact - Star - rather than several member airlines.

Mr Findeisen said he expected rival alliance oneworld (which includes Qantas, British Airways and American Airlines) to copy the idea, but that would take at least a year.

The Star chief executive, Jaan Albrecht, has accused airports around the world of arrogance in the way they have been increasing their fees to their airline users.

Mr Albrecht says Star has approached airports on its members' behalf but with little success.

Although several airports have lowered their fees - including Singapore, Dubai, Abu Dhabi, Vienna and Athens - others have responded only by postponing increases for a few months.

Mr Albrecht's comments are sure to bring a wry smile to Auckland Airport managing director John Goulter, who is due to report his company's half-year profit result today.

Auckland reached a compromise with its airline users late last year, agreeing to smaller immediate increases and the postponement of longer-term increases it had originally wanted.

* Daniel Riordan attended the Star Alliance media colloquium in Bangkok and Singapore as a guest of Star Alliance.

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