Browsing by Author "Hazledine, Tim"

Now showing 1 - 3 of 3

Open Access
Competition Policy for the Trans-Tasman Air Travel Market: the 2005 ACT Decision and its Implications
(Te Herenga Waka—Victoria University of Wellington, 2006) Hazledine, Tim
Qantas and Air New Zealand are seeking regulatory authorisation for a Tasman Networks Agreement that would in effect cartelise their trans-Tasman operations. They cite in support Reasons given by the Australian Competition Tribunal in its authorisation of their previous application to form a 'Strategic Alliance'. The ACT determined that a cartel-like arrangement between these airlines would not substantially lessen competition across the Tasman because of competition from Pacific Blue and Emirates despite the latter's very small current market share on these routes. This paper examines the ACT's reasons and finds them lacking in economic logic as well as being inconsistent with the facts of airline market competition in Australasia. The paper suggests that the ACT is not an appropriate forum for hearing civil matters such as this and proposes an alternative process based rather on the present procedures adopted by the competition commissions of Australia and New Zealand
Open Access
Flying High? Pricing and Competition in the NZ and Tasman Air Travel Market
(Te Herenga Waka—Victoria University of Wellington, 2005) Hazledine, Tim
Professor Tim Hazledine presented Flying High? Pricing and Competition in the NZ and Tasman Air Travel Market at an ISCR seminar on 1 June 2005.
Open Access
Pricing and Competition in Australasian Air Travel Markets
(Te Herenga Waka—Victoria University of Wellington, 2006) Hazledine, Tim
The paper analyses more than ten thousand observations on prices charged for air travel on 1001 flights on eight New Zealand and twenty one trans-Tasman flights observed in 2004 and 2005. The main findings are (i) that routes on which Qantas competes with Air New Zealand tend to have air fares around 20% lower than routes served only by Air NZ; (ii) Emirates and Pacific Blue offer much lower fares across the Tasman but yet cannot achieve substantial markets share implying that (iii) these airlines do not offer much competitive constraint on the pricing of the larger carriers so that (iv) elimination of independent competition between Air NZ and Qantas would be likely to result in air fare increases.