Trans-Tasman battle

A MONTH after Australia opened the trans-Tasman aviation mar ket for the two national carriers, New Zealand cleared Qantas to increase its stake in Air New Zealand.

New Zealand’s anti-trust Commerce Commission removed an embargo it placed on Qantas - allowing it to strengthen holding in Air New Zealand and established as the leading carrier in the region.

The commission said it had withdrawn because it had achieved its main objec tive of preventing Qantas from acquiring further shares in Air New Zealand without the commission’s clearance.

Qantas holds 19.9 per cent of Air New Zealand, which is largely (42.5%) owned by Brierley Investments Ltd.

“The commission has concluded that its action to block the acquisition by Qantas has been vindicated and has been successful,” said its chairwoman, Susan Lojkine.

It claimed that Qantas made an agreement with Japan Air Lines and American Airlines in April, 1989, when

they bought Air New Zealand from the government.

AA recently sold its 7.5 per cent stake to BIL. The commission has been trying to block Qantas from gaining AA’s holding because it would have lifted the Australian carrier’s position in the New Zealand aviation market. • Meanwhile, Qantas in recent months has extensively promoted Pacific island routes, especially Fiji, New Cale donia and French Polynesia - its main routes in the region.

Since last February it began selling Fiji as its cheapest holiday destination in a pack of 16 choices.

Fiji sells at 5A559 for airfare and three nights accommodation, cheaper than its closest rival, New Zealand at 5604 which offers only return airfare plus seven days of car hire with unlimited kilometres.

Other top selling Qantas destinations out of Australia are Noumea, Honolulu, Bali, California, Hong Kong, Britain, Singapore, California, Tahiti, KuUla Lumpur, Bangkok, Africa, Tokyo and a New Zealand package.