ICCC disagrees with Air Niugini’s code-share plan

THE Independent Consumer and Competition Commission (ICCC) will not authorise Air Niugini’s plan to partner with Philippine Airlines in providing code-share services between Port Moresby and Manila, commissioner and chief executive Paulus Ain says.
The ICCC made the decision after assessing Air Niugini’s application and concluded that the POM/MNL route was already competitive and the introduction of the proposed code-share would stifle the current level of competition and reduce the current levels of benefits for the travelling public.
Ain said the “free sale” code-share arrangement was not competitive and hence, it would lessen the level of competition in the market. “The ICCC considers that in the present circumstances, it is better to have Air Niugini and Philippine Airlines to continue to operate independently on the Port Moresby and Manila route,” he said.
Consistent with its draft determination which was released on July 11, the ICCC considered that, if the parties proceed with the code-share arrangement, the benefits resulting from this would not outweigh the benefits realised currently.
Ain said with comments received from stakeholders and submissions from the parties, the ICCC assessed the application and was not satisfied that the code-share services, if authorised, would result in more benefits to the public.