‘Virtual monopoly’ - Consumer NZ calls for government probe into Air NZ prices

Consumer NZ says Air NZ’s “virtual monopoly” of domestic aviation is pushing up prices and warrants a government inquiry. It has written to the Minister of Commerce and Consumer Affairs Andrew Bayly urging him to direct the Commerce Commission to undertake a market study into NZ’s aviation sector. Similar inquiries have been held into the fuel and supermarket sectors.

Consumer NZ chief executive Jon Duffy said in sectors where any single company holds a significantly high market share, such as Air NZ, which holds an 86% share, there is a risk competition isn’t working as it should to keep prices reasonable. In the letter he says: “Air NZ has significant market power. In recent times, consumers have faced ever increasing costs to fly.



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