An ANZAC Spirit in the Air?

An Anzac Spirit in the Air?

Air travellers would be better off if the New Zealand and Australian markets were combined. This conclusion comes out of a recent study for the two governments over extending the Closer Economic Relations agreement to include passenger air travel.

The aim of all the recent trends in aviation regulation is to ensure competition offers the greatest possible benefits to passengers. However, increased competition risks some rationalisation of capacity and even a shakeout amongst the airlines. For example, the recent agreement between Air New Zealand and Qantas to cooperate over the Tasman is a response to existing competition. T his strategic move suggests that consumer or national advantage cannot be guaranteed, particularly when governments own airlines.

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