Qantas and Air New Zealand (ANZ) have appealed to the Australian Competition Tribunal against the final decision of the Australian Competition and Consumer Commission to reject their equity alliance.
Before the deadline for that appeal, the two airlines had also hoped to have a final decision on the same proposal from the New Zealand Commerce Commission (NZCC), which reviews mergers under New Zealand law. But the NZCC, whose decision was expected before the end of September, has delayed its judgement for at least a month. The New Zealand decision could greatly affect whether the airlines pursue their Australian appeal or drop it.Qantas and ANZ must have clearance from both competition agencies before they can proceed with their merger. They appealed against the Australian verdict to preserve their rights while awaiting the NZCC's decision. They see the odds of a favourable NZCC finding as better than they expected or got in Australia. Some analysts see the NZCC's delay as a positive omen.
But if the NZCC also rules against the airlines, the prospects of reversing both decisions on appeal are remote. This is especially true in New Zealand, where review on appeal is limited.
However, if the NZCC gives the merger a green light, Qantas and ANZ will press ahead with their appeal to the Australian Competition Tribunal, which consists of a three-member panel chaired by a federal judge. The other two members are usually an economist and a business expert. The tribunal has set a tentative hearing for late March or April.
Source: Airline Business
