Air Niugini codeshare request rejected

THE Independent Consumer and Competition Commission (ICCC) has refused Air Niugini’s request to codeshare with Philippine Airlines on the Port Moresby-Manila route.
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Paulus Ain

Staff Reporter

It said it believed the proposed codeshare would stifle competition which benefits travellers, The National newspaper reported.
 
Commission CEO Paulus Ain said the ICCC considered that in the present circumstances, it was better to have Air Niugini and Philippine Airlines continue to operate independently on the route.
 
ICCC noted that some key considerations and reasons for declining authorisation were:
 
• The current market data on the route indicated that there was potential for growth in traffic volume;
 
• The total of nine flights weekly is sufficient to maintain or improve the current level of services enjoyed by businesses and other travellers in both countries, using air services on the Port Moresby-Manila route;
 
• A reduction in airfares to lessen the anti-competitive effect of the only two competitors in the market entering into the proposed agreement was unlikely under the proposed ‘free sale' arrangement which was highly likely to exacerbate anti-competition.
 
• The projected increased revenue for Air Niugini did not include information on how Air Niugini had been faring on this route. Air Niugini also did not demonstrate how any increased revenue would translate to public benefit.

 

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