Air Niugini, Qantas code-sharing revoked
14 September, 2018, 6:34 pm
PORT MOTRESBY,13 SEPTEMBER 2018 (POST COURIER) – The Independent Consumer and Competition Commission has informed stakeholders and the general public that it revoked authorisation determinations A2015/18 and A2016/24 for code-share arrangements between Air Niugini and Qantas.
This revocation is based on the decision of Air Niugini and Qantas to cease the code-share services between various Papua New Guinea and Australian routes which amounted to a material change of circumstance pursuant to Section 80 of the ICCC Act.
ICCC Commissioner and CEO, Paulus Ain, said authorization A2015/18 was granted on April 22, 2016 for three years, for Air Niugini to continue its code-share arrangement with Qantas for the Port Moresby–Brisbane and Port Moresby-Sydney routes.
“The Port Moresby–Brisbane sector code-share covers both passenger and freight component while Port Moresby-Sydney only covers passenger services,” Ain said.
Authorisation A2016/24 was granted on November 9, 2016 for Air Niugini to enter into and give effect to a code-share agreement with Qantas, on a “free sale” basis, on flights operated by Air Niugini between Port Moresby and Cairns (POM/CNS) for a period of five (5) years, commencing from 10th November, 2016.
Ain said that on February 16, 2018, Qantas submitted an application to the International Air Service Commission (“IASC”) of Australia requesting a variation on existing capacity determinations to permit the utilisation of capacity for code-share services with Air Niugini on a free sale basis.
“However, on April 30, 2018, the IASC released its draft determination proposing not to allow Qantas to vary its determination relating to the code-share arrangements with Air Niugini on the PNG routes to free sale. Consequently, Qantas withdrew its application from the IASC on 16th May, 2018.
“Air Niugini then advised the ICCC of the situation and indicated that the code-share services with Qantas effectively ceased on July 1, 2018,” he said.
He explained that the cessation of the codeshare services by the parties amounted to a material change in circumstance prompting the ICCC to revoke the mentioned authorizations and related variations.