Link PNG has received permission from the Independent Consumer and Competition Commission for a code-share agreement with PNG Air Limited, except the Joint Operations Agreement.
On April 9, 2021, Link PNG applied for approval under Section 70 of the Independent Consumer and Competition Commission Act 2002 to engage into and give effect to a proposed Joint Operations Agreement, which involves the provision of a proposed five-year Code-share Agreement with PNG Air.
The proposed JOA, according to the application, is for the aim of coordinating flight schedules, fleet allocation, operating and maintenance of services, and charter airline operations between the two airlines, among other things.
The suggested Code-Share Agreement was for the purpose of free-sale.
Paulus Ain, ICCC Commissioner and Chief Executive Officer, stated that the ICCC recognized the following markets as relevant:
- The domestic market for scheduled or regular passenger transportation services;
- The market for domestic air freight services is competitive.; and
- The market for domestic air charter services to destinations within Papua New Guinea.
“Overall, the ICCC has considered that only the proposed Code-share Agreement should be authorized 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.” Mr Ain said.
“The ICCC has considered that the proposed JOA should not form part of the authorisation, because it would lessen competition and result in greater detriment than benefit.”
Reference: Post-Courier (5 November 2021). “Link PNG Gets Ok To Codeshare With PNG Air”.
