The New Zealand government yesterday gave its approval for Australia's Qantas Airways to form an alliance with Air New Zealand, saying the deal would secure the local airline's viability as an international carrier.
The deal, however, hinges on whether competition regulators in Australia and New Zealand give their assent to the proposal, which has been widely criticized as anti-competitive.
Under the decision by the New Zealand government, Qantas will be allowed to take an initial 4.99 percent stake in Air New Zealand and, if the regulators approve, increase that to 22.5 percent.
PHOTO: AFP
The higher stake would allow Qantas to take two seats on Air New Zealand's board and let the companies combine some of their operations. Air New Zealand would also take one seat on the Qantas board.
Rival airlines, industry analysts and air-freight companies have criticized the plan, saying it would stifle competition. They say it could enhance Qantas' dominance of the Australian market and create a virtual monopoly in New Zealand and on services between the two countries.
Finance Minister Michael Cullen acknowledged their concerns, saying "the government is aware that the proposed alliance will reduce competition in New Zealand and across the Tasman [Sea]."
However, the deal was necessary to secure the local flag carrier's long-term viability as an international airline and give Qantas "a powerful reason to ensure that Air New Zealand is a successful airline," Cullen said in a statement.
Air New Zealand almost collapsed last year but was bailed out by the government, which now owns 82 percent of the air carrier.
Qantas will pay NZ$98 million (US$51 million) for the 4.99 percent stake and another NZ$500 million (US$258 million) if regulators approve the additional 17.6 percent.
The companies announced plans for the alliance in November, pending approval by the New Zealand government and regulators.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source