PNG ICCC declines proposed codeshare between Air Niugini and Philippine Airlines

Papua New Guinea's (PNG) Independent Consumer and Competition Commission (ICCC) " proposed to decline" (17-Jul-2019) authorisation for a codeshare alliance between Air Niugini and Philippine Airlines covering Port Moresby-Manila services. In its assessment of the application, the ICCC considered:

• The market is already competitive and introduction of the proposed codeshare "will only stifle the current level of competition", adding there is "little incentive for strong price competition";
• Current market data on the route indicates it is likely that traffic volume will continue to increase and potentially attract new carriers on the route since Philippine Airlines entered the route independently;
• The total of nine weekly services is sufficient to maintain or improve current levels of services with no indication of services potentially decreased due to the absence of a codeshare;
• The proposed codeshare may "result in increased travel choice for the travelling public, particularly for loyalty programme members, such arrangement is not likely to benefit consumers on a route that has only two players". [more - original PR]