Watchdog wary of rival merger

SYDNEY - Australia's consumer watchdog said yesterday that it would be concerned if Air New Zealand-owned Ansett and Virgin Blue were to merge, following its approval of a merger between Qantas Airways and Impulse Airlines.

"That would be a concern that we would have to look at very closely if they went so far as to have a merger," the chairman of the Australian Competition and Consumer Commission, Allan Fels, said at a briefing on its approval of the Qantas/Impulsemerger.

Mr Fels added that a tie-up between Ansett and Virgin would be a different scenario to the Qantas/Impulse merger because Impulse was a failing firm.

Earlier, the commission said it would not oppose the merger of Qantas and Impulse after receiving undertakings relating to takeoff and landing slots at Sydney airport.

Qantas rivals Virgin Blue and Ansett Australia have been awaiting the decision before deciding their next steps to combat the competitive threat of a combined Qantas/Impulse.

- REUTERS

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