Air New Zealand and Virgin Blue expect decision on trans-Tasman JV this week
Air New Zealand and Virgin Blue are expecting a final decision on their proposed trans-Tasman JV later this week (The Australian/BusinessDay.co.nz, 14-Dec-2010). Air New Zealand CEO Rob Fyfe stated the Australian Competition and Consumer Competition (ACCC) has until 20-Dec-2010 to make its decision and usually reviews their applications on a Wednesday. New Zealand Ministry of Transport (MOT) is aiming to make its own decision on the alliance by Christmas. Mr Fyfe stated he has not been provided with any indication on what the ACCC of MOT will decide. He added the carrier would appeal the decision to the Australian Competition Tribunal if the ACCC is to turn down the alliance. Virgin Blue CEO John Borghetti also stated he was unsure what the ACCC and MOT will decide. Mr Borghetti added he would not rule out the carrier joining the Star Alliance with Air New Zealand. He made the comment at the Star Alliance meeting in Queenstown this week, after being invited to the meeting by Mr Fyfe.
Air New Zealand: “I certainly believe that we have got a very strong case. We effectively don't have any objectors. So my personal belief is the case is strong enough that I would certainly want to explore an appeal,” Rob Fyfe, CEO. Source: BusinessDay.co.nz, 14-Dec-2010
Virgin Blue: “There's a chance for Virgin Blue to look at everything. We've got a lot on at the moment and we're evaluating everything, and I mean everything, and certainly as we go forward we'll see where that leads,” John Borghetti, CEO. Source: The Australian, 14-Dec-2010.