ICCC grants code-sharing for local airlines

The National Business

LINK PNG and PNG Air can now code-share following authorisation that was granted to the airlines by the Independent Consumer and Competition Commission (ICCC).
ICCC in a statement yesterday said, on April 9, Link PNG, a subsidiary of Air Niugini, lodged an application for authorisation to enter into a proposed joint operating agreement (JOA) which included provision of a proposed code-share agreement with PNG Air for five years.
However, ICCC authorised the agreement for two years.
According to the application, the proposed agreement is for the coordination of flight schedules, fleet allocation, operational and maintenance of services and charter airline operations between the two airlines. The proposed code-share agreement is for a free-sale basis.
ICCC commissioner and chief executive officer Paulus Ain said ICCC identified relevant markets for:

  • THE provision of domestic scheduled or regular passenger transport services;
  • THE provision of domestic air freight services; and,
  • THE provision of domestic air charter services, to destinations within PNG.

“Overall, the ICCC has considered that only the proposed code-share agreement should be authorised with a number of conditions aimed at minimising the likely anti-competitive effects and ensuring the two airlines continue to compete in the long term,” Ain said.
“The ICCC has considered that the proposed JOA should not form part of the authorisation, because it would be likely to substantially lessen competition and result in greater detriment than benefit to the public.
“The ICCC therefore grants authorisation with conditions to Link PNG to enter into and give effect only to the proposed code-share agreement, which includes both passenger and freight, with PNG Air for a period of two years from the date the authorisation becomes effective.
“For the avoidance of doubt, no other provisions of the JOA are authorised by this determination accept the code-share agreement.”