Watchdog approves code-sharing deal
The Independent Consumer and Competition Commission has allowed Air Niugini Ltd to operate code-sharing services with Cathay Pacific Airways Ltd on the Port Moresby-Hong Kong route.
The arrangement will be on a free-sale basis.
It means that Cathay Pacific will have unrestricted access to Air Niugini’s seat inventory and sell them to its customers.
After assessing Air Niugini’s application and comments from stakeholders, the ICCC concluded that the POM-HKG route had no “direct competition” as Air Niugini was the only carrier providing scheduled passenger services.
Therefore, the code-share deal will provide an element of competition on the route, especially on the marketing front.
ICCC Commissioner and chief executive officer Paulus Ain said the proposed code-share arrangement would bring into the market another airline, which would have otherwise not entered the market, and give another choice to the travelling public.
“Currently, Air Niugini is the only carrier providing scheduled passenger services on the Port Moresby-Hong Kong route and therefore monopolises that route,” Ain said.