As competition with Qantas gathers pace, Air New Zealand (ANZ) is investigating whether recent Qantas prices are predatory. ANZ says it is concerned about the general fares being offered within New Zealand and to Australia, as well as particular deals for New Zealand corporate travellers.
Ralph Norris, ANZ's new chief executive, says: "There's no doubt their pricing strategies are all about putting us in the vice. Qantas is discounting heavily in this market, obviously using the profits they're gaining out of the Australian market to subsidise losses they're willing to take in this market," he says. Under New Zealand law, ANZ could file its own lawsuit against Qantas if it concludes it has a basis for such a case.
Meanwhile, Australia's securities commission has launched an investigation into the adequacy of ANZ's market disclosures before Ansett's collapse last September. New Zealand's securities commission has already investigated and exonerated ANZ on the same issue, and the Australian commission has already cleared Ansett's directors of any liability.
This has led some New Zealand observers to question whether Australia's latest investigation is designed to draw attention away from Canberra's own role in the Ansett crisis, which has been criticised by various sources in both New Zealand and Australia
Source: Airline Business
