Origin calls for investigation into Air NZ pricing

Origin Pacific says Air New Zealand is muscling in on routes. Picture / Wanganui Chronicle.

Regional airline Origin Pacific will ask the Commerce Commission to investigate Air New Zealand for predatory pricing.

The Nelson-based carrier yesterday described Air NZ as "the Telecom of the skies" and claimed it was the subject of ongoing action by the Government-owned national carrier "aimed at regaining its monopoly status on domestic routes".

Air NZ began new services in April on two Origin Pacific routes - Nelson to Hamilton and Nelson to Palmerston North.

Origin is unhappy that it is chartering aircraft to fly those routes.

"Air NZ is complaining about unfair competition on the transtasman route and seeking support for code-sharing, yet at the same time it goes to the expense of leasing planes to take on its only real competitor in regional services," said Origin spokesman Brendon Burns.

Origin Pacific will also ask the commission to look at Air NZ's pricing on three routes.

Last week, Air NZ announced special fares on the Wellington-Blenheim, Auckland-Nelson and Nelson-Christchurch routes, all of which are serviced by Origin Pacific.

"This is the pattern," Burns said. "Air NZ attempts to squeeze out the competition on routes where there is an alternative, but you pay through the nose if you live in Whangarei or Invercargill, or any of the other centres not served by Origin Pacific."

Origin Pacific will file a formal application with the commission in the next fortnight.

Air NZ said it was disappointed by the move, describing it as a waste of time. The company's short-haul airlines general manager, Norm Thompson, said it had been developing its domestic service for three years in response to demand. Some of that demand was actually driven by Origin Pacific's decision to cut back services on many routes.

He said Air NZ was a supporter of Origin and was one of the creditors that wrote off substantial debts when it nearly went bankrupt in 2004.

This is the second time Origin has taken Air NZ to the commission. In 2003, it claimed that the larger airline was being anti-competitive by announcing a Hamilton-Christchurch service eight days after Origin Pacific unveiled its plans for the route.

After more than two years looking into the case, the commission eventually disagreed.

"Frankly, it's quite disappointing to see Origin Pacific indicating it wants to waste more of everyone's time," Thompson said.

Origin Pacific flies services to Auckland, Hamilton, Napier, New Plymouth, Wanganui, Palmerston North, Wellington, Blenheim, Christchurch and Nelson.

It is starting a new service from Tauranga to Christchurch on June 28.