SFGate: New Zealand's High Court rejects planned Air New Zealand-Qantas alliance

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inancial0841EDT0017.DTL
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Monday, September 20, 2004 (AP)
New Zealand's High Court rejects planned Air New Zealand-Qantas alliance



   (09-20) 05:41 PDT WELLINGTON, New Zealand (AP) --
   Citing anticompetitive concerns, New Zealand's High Court rejected on
Monday a proposed alliance between the country's flagship carrier and
Australian rival Qantas.
   Despite the option to appeal, Qantas said the decision all but killed the
proposal and that it was time to move on.
   The High Court upheld a New Zealand Commerce Commission's decision
rejecting the proposed merger on the grounds it was anticompetitive, the
airline said in a statement to the country's stock exchange.
   Air New Zealand chief executive Ralph Norris said in a statement he was
disappointed with the decision.
   Under the proposed alliance, Qantas was to buy up to 22.5 percent of Air
New Zealand for 550 million New Zealand dollars ($363 million), enabling
the two operators to cooperate on all their routes between Australia and
New Zealand.
   Both Air New Zealand and Qantas said the alliance was necessary to help
them cope with increasing competition within the aviation industry. Air
New Zealand, which is 82-percent government owned, had said the deal was
critical to its long term survival.

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Copyright 2004 AP

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