Origin releases 'smoking gun' memo

By CHRIS DANIELS

Origin Pacific has released an internal Air New Zealand memo it says backs its claim of predatory behaviour by the national carrier and has made an official complaint to the Commerce Commission.

The Nelson-based airline says its plans for a new Hamilton-Christchurch route have been thwarted after Air NZ announced an identical service, starting on the same day, leaving at the same time, but with a plane twice the size.

Air NZ says it has been planning the move for years.

But even the hint of anti-competitive conduct could not come at a worst time for Air NZ, which is just weeks away from hearing the Commerce Commission's verdict on its proposed alliance with Qantas.

Opponents of the alliance, which include Origin Pacific, say an Air NZ-Qantas deal will allow it to exert huge market power on the Tasman and domestic routes, squashing potential rivals.

Origin has responded to the Air NZ defence with a smoking gun, yesterday releasing a copy of an internal Air NZ flyer issued to staff at its Eagle Air subsidiary.

Penned by Eagle Air general manager Doug Roberts, the flyer casts doubt on the Air NZ claim that it has been planning the new service for years.

After detailing the new Origin service, the flyer says : "Air New Zealand will be responding to counter this move as we must in a competitive environment. To demonstrate the potential threat they pose, last week they achieved a 73 per cent load factor across their network."

"Note the word 'counter'," said Origin founder and executive chairman Robert Inglis. "This memo confirms that we went first and Air NZ then decided to launch an identical service to force us off the route.

"We are flattered that our 5 per cent market share is seen as a 'threat' by the national carrier, but alarmed and upset that deliberate action by a taxpayer-funded business to force us from a market is seen as legitimate competition."

A spokeswoman for the Commerce Commission yesterday confirmed it had received a complaint from Origin Pacific alleging anti-competitive behaviour by Air NZ.

The complaint was being assessed before a decision is made whether to proceed with an investigation.

Air NZ has already sent the regulator documents backing its claim that it had been planning the Hamilton-Christchurch route for years, and that it was not a response to Origin Pacific.

Air NZ senior vice-president of sales Norm Thompson said the confidential documents supplied to the commission show that a detailed expansion strategy including the Hamilton-Christchurch flight was submitted to management on July 2.

The fact the flights leave at the same time as the Origin Pacific flights was a coincidence. Two flights left at that time (7.20am) already, but the routing of one was simply being changed, flying direct to Christchurch rather than via Wellington.

Visitors to the Air NZ website were yesterday unable to see details of these new direct flights, despite their being apparently so long in the planning.

A passenger wanting to travel one way from Hamilton to Christchurch on October 20 is shown only flights that stop off at Wellington, not the new direct services that are due to start flying the week before.