The Australian ACCC (Australian Competition & Consumer Commission) recently handed down a Draft Determination in favour of a trading merger with Virgin Australia and Air New Zealand in the form of a Code Share Agreement.  The ACCC was formed to identify issues that are related to anti-competitive behavior, strategic increases in market power by collusion between airlines and the deliberate actions that deter and inhibit new entrants entering the market.  These powers of the ACCC relate to the protection of the consumer from trading exploitation.

We put it that all of the above is planned by the applicants for the Code Share Agreement and the ACCC is incorrect in its support for such planned behavior and conduct.  We believe that should a Final Determination be handed down by the ACCC that endorses the above trading merger Jumpjet Airlines Limited will be severely impacted in an adverse sense and deterred from entering the market on commercial terms.

Virgin Australia is also a foreign carrier planning to trade in the Single Aviation Market between Australia and New Zealand which is outside of the rules that were historically put in place to promote the aviation economic development of national aviation business through new resident companies.  Unless we can break this status quo regressive activity such abuse will continue.  Companies like the Virgin companies and Bonza have well and truly had their opportunities in this market and made a mess.  We do not want Jumpjet to suffer the same fate!  Thus the design of modelling differences.

We will keep you posted…!

The Australian ACCC (Australian Competition & Consumer Commission) recently confirmed the above Draft Determination in favour of a trading merger between Virgin Australia and Air New Zealand in the form of a Code Share Agreement.  Jumpjet believes that this continues the gradual eroding of the market by relaxing trading standards and blending market power between the major airlines on the Single Aviation Market routes between Australia and New Zealand.

In the first instance such anti-competitive behavior, endorsed by authorities, would seem to favour Jumpjet.  But in the longer term such activity makes it more difficult to commercially gain market entrance.  Also, the continual alliances and partnerships prevents national econmic development in the market and promotes the dilution of the industry to the rest of the world.

Exampled by Qantas gaining alliance with Emirates Airlines – a fifth freedom carrier.  The marketing put to the consumer by stick and carrot is that there are more choices and services – but at what cost?

Today, every airline on the Tasman routes is in an alliance of some form!