ICCC proposes to allow airline code-share services

The Independent Consumer and Competition Commission (ICCC) proposes to allow Air Niugini to continue to partner with Air Vanuatu and Solomon Airlines in their respective code-sharing arrangements for a further period of three years.

The code-share services will be provided under flights operated by Air Niugini.

The code-share arrangement with Air Vanuatu will be on the Port Moresby-Port Vila route via Honiara. The code-share arrangement with Solomon Airlines will be on the Port Moresby-Honiara route.

Commissioner and Chief Executive Officer, Paulus Ain, said whilst both code-share agreements raise competition concerns, they are likely to continue to bring more benefits to the players in the aviation industry and contribute to the growth of economic activities associated with the aviation industry. 

Ain added that the ICCC’s assessment concludes that these code-share arrangements will result in some of the following benefits to the traveling public:

  • Potential growth in economic activities as a result of increasing traffic volume (from Asia and the Pacific) and making Port Moresby as a hub to the Pacific for Asian travelers and as a hub to the Asian destinations for Pacific travellers;
  • Foster the development and growth of the route in terms of traffic volume for Port Moresby in the long run;
  • Increase travellers’ choice of marketing airlines;
  • Increase frequency of services and connection to and from Asian destinations; and
  • Encourage independent entry of competing airlines, after growth in their respective market shares, in the long run.   

“To minimise the anti-competitive effects of the agreements, the ICCC proposes to impose some conditions to control the behaviour of the parties,” Ain said.

“Any interested business or general public who would like to comment or provide their views on the Draft Determination must do so before 26th January, 2018.”

Copies of the Draft Determination can be accessed on the ICCC’s website: www.iccc.gov.pg or by contacting Steven Sugl on 325 2144 or email: ssugl@iccc.gov.pg.  

The ICCC is Papua New Guinea’s principal economic regulator and consumer watchdog. It was established by the Independent Consumer and Competition Commission Act 2002 (the ICCC Act).

Among its enabled powers, the Commission can grant authorisation to parties to enter into and give effect to business agreements that would normally be deemed illegal under the ICCC Act. 

Press release