Qantas/Air New Zealand merger blocked

Australia’s competition watchdog has rejected a proposed alliance between Qantas Airways and Air New Zealand, saying the partnership would raise air fares and would not be in the public interest.

Rival airlines, industry analysts and air freight companies had criticised the plan, saying it would stifle competition.

They said it could enhance Qantas’ dominance of the Australian market and create a virtual monopoly in New Zealand and on flights between the two countries.

Qantas chief executive officer Geoff Dixon said the Australian national carrier was “extremely disappointed” with the decision, and may appeal to a review panel.