Rivals unite to combat Air NZ tactics

By PAULA OLIVER

The tactics of Air New Zealand have sparked a strong show of unity among its rivals.

Pacific Blue, the local wing of Australian budget carrier Virgin Blue, confirmed yesterday that it would write to the Commerce Commission to support an earlier complaint against Air NZ by Nelson-based Origin Pacific.

The unity comes after Air New Zealand disclosed on Monday that it would add a Christchurch-Rarotonga direct service to its schedule from December 1.

The flight will leave every Wednesday using a new 146-seat Airbus A320 plane. What agitated Pacific Blue was that back in June it publicly said it was seriously looking at a Christchurch-Rarotonga route, that it would fly mid-week and that it was seeking the necessary regulatory approvals.

"It's not really a surprise," Pacific Blue chief executive Tony Marks said yesterday of Air NZ's move.

"We're fascinated that Air NZ seems to have outsourced its initiatives. What they're doing is largely copying everything that anybody else comes up with."

Marks said Pacific Blue would not complain to the commission, but it would instead support a complaint made by Origin Pacific.

"We're big enough to look after ourselves and we'll accept competition as it comes. But there are smaller, less well-capitalised airlines who have had the same sort of the treatment."

The Origin Pacific complaint centres on events last year that saw it announce in September that it would start flying between Hamilton and Christchurch.

That same week Air New Zealand said it would start flying the route, leaving at exactly the same time each day, but with a much bigger aircraft.

Origin subsequently abandoned its plan.

Origin founder and managing director Robert Inglis said yesterday that he understood Pacific Blue's frustration.

"If the state-controlled airline is going to be able to ride roughshod over any competition, then the travelling public, especially regionally, will have less and less choice," Inglis said.

The commission confirmed yesterday that it was still investigating the complaint and it "could be a number of months" before it was completed.

Inglis said it was unfortunate it was taking so long.

"It's nearly a year since this occurred and we think that's an unreasonably long time," he said.

"In an extreme situation, an airline could be so damaged that even if there is some chance of redress a year later it's too late."

Air NZ said its move to add a Christchurch-Rarotonga service was simply a response to market demand.

South Islanders travelling to Rarotonga had shown up as a strong area of growth.

Unlike Origin Pacific, Pacific Blue is not being scared off by the Air NZ move.

Marks said yesterday that the Christchurch-Rarotonga route would "absolutely" still go ahead. He would not put a take-off date on it, but said it would "be competitive".

But as for it being midweek, Marks admitted that might change. "We might have another look at."