Claims Of Predatory Pricing.
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Claims Of Predatory Pricing.
This is the main business story out of New Zealand this morning, quoted exactly with NO comment either way.
PLEASE feel free to debate the pros and cons, rights and wrongs, of the issue.
However PLEASE do NOT reduce it to more Kiwi or Aussie Bashing, or any personal comments about any other PPRuNers.
"lame"
(QUOTE)
BUSINESS
SATURDAY, 13 OCTOBER 2001
B U S I N E S S S T O R Y
Farmer takes swipe at Qantas tactics
13 October 2001
By ANDREA FOX
Qantas has rejected a claim of predatory pricing by Air New Zealand acting chairman Jim Farmer.
Dr Farmer has put Qantas on notice that Air New Zealand will not tolerate any more tactics designed to crush Ansett Australia or trans-Tasman competition.
He also claimed predatory conduct by Qantas in an affidavit to the Australian Federal Court.
Dr Farmer criticised Qantas for removing conditions on advance purchase tickets. He said this week that the move was aimed at a weak Air New Zealand and had been "devastating".
Qantas chief executive Geoff Dixon said his airline had introduced a new domestic economy class fare structure in March.
"As we said at the time, the new . . . structure was introduced to significantly simplify the booking process for customers by removing a number of outmoded conditions."
The new structure recognised changing consumer demands and had been confirmed by a US consulting firm as the most appropriate fare structure for the Australian environment, he said.
"Qantas does not at any time act with the purpose of damaging our competitors. Qantas at all times acts with the legitimate purpose of maximising profitability and shareholder return. We have the right to compete and we took the action in March to offer a competitive, simple fare structure as demanded by our customers."
Mr Dixon said Dr Farmer had wrongly claimed Qantas had introduced an $88 Sydney-Melbourne return fare.
Dr Farmer said Qantas had introduced the Sydney-Melbourne fare to "crush" a restructured Ansett before it got off the ground.
(END QUOTE)
PLEASE feel free to debate the pros and cons, rights and wrongs, of the issue.
However PLEASE do NOT reduce it to more Kiwi or Aussie Bashing, or any personal comments about any other PPRuNers.
"lame"
(QUOTE)
BUSINESS
SATURDAY, 13 OCTOBER 2001
B U S I N E S S S T O R Y
Farmer takes swipe at Qantas tactics
13 October 2001
By ANDREA FOX
Qantas has rejected a claim of predatory pricing by Air New Zealand acting chairman Jim Farmer.
Dr Farmer has put Qantas on notice that Air New Zealand will not tolerate any more tactics designed to crush Ansett Australia or trans-Tasman competition.
He also claimed predatory conduct by Qantas in an affidavit to the Australian Federal Court.
Dr Farmer criticised Qantas for removing conditions on advance purchase tickets. He said this week that the move was aimed at a weak Air New Zealand and had been "devastating".
Qantas chief executive Geoff Dixon said his airline had introduced a new domestic economy class fare structure in March.
"As we said at the time, the new . . . structure was introduced to significantly simplify the booking process for customers by removing a number of outmoded conditions."
The new structure recognised changing consumer demands and had been confirmed by a US consulting firm as the most appropriate fare structure for the Australian environment, he said.
"Qantas does not at any time act with the purpose of damaging our competitors. Qantas at all times acts with the legitimate purpose of maximising profitability and shareholder return. We have the right to compete and we took the action in March to offer a competitive, simple fare structure as demanded by our customers."
Mr Dixon said Dr Farmer had wrongly claimed Qantas had introduced an $88 Sydney-Melbourne return fare.
Dr Farmer said Qantas had introduced the Sydney-Melbourne fare to "crush" a restructured Ansett before it got off the ground.
(END QUOTE)
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LAME:- I'm puzzled. Why would Farmer be remotely interested in the effect of QF's pricing policies on AN? Do I just have a nasty, suspicious mind, or is there a deeper interest here, e.g., if AN Mk2 is successful, is Farmer sowing the seed of another liaison? Is he still trying to keep SQ out of the picture? Does anyone really believe that QF are NOT out to crush any and all possible opposition?
Stay tuned for further reports from LAME.
Kind regards,
TheNightOwl.
Stay tuned for further reports from LAME.
Kind regards,
TheNightOwl.
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TheNightOwl,
You MAY very well have a nasty, suspicious mind, however you are also correct.
He has already made it clear that IF Ansett get up and running again in any substantial way, he wants to have a commercial agreement with Ansett........
So at present it IS in his interests to try to curtail Qantas.
Best regards,
"lame"
You MAY very well have a nasty, suspicious mind, however you are also correct.
He has already made it clear that IF Ansett get up and running again in any substantial way, he wants to have a commercial agreement with Ansett........
So at present it IS in his interests to try to curtail Qantas.
Best regards,
"lame"
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Air NZ used all available resources to take Kiwi International out of the picture. It should come as no surprise to them that Qantas is trying to do the same to them.
Farmer is in panic mode as the NZ government owned Air NZ is probably going down unless there is a lot more tax payer money pumped in. I can hear the excuses now.
"We didn't have enough time to do due diligence on the rescue package. The airline is far worse condition than we thought. We need 1 BILLION DOLLARS."
"Why must I be surrounded by IDIOTS"
"I'm the boss, need the info"
Farmer is in panic mode as the NZ government owned Air NZ is probably going down unless there is a lot more tax payer money pumped in. I can hear the excuses now.
"We didn't have enough time to do due diligence on the rescue package. The airline is far worse condition than we thought. We need 1 BILLION DOLLARS."
"Why must I be surrounded by IDIOTS"
"I'm the boss, need the info"
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Why is there always such surprise that competition results in the failure of some of the participants. Competition in the business world results in the winner taking all.
If you attempt to "assist your competitor" by "backing off" then you will fail.
After US domestic deregulation some 200 new carriers emerged and around the same number were either taken over by the majors or collapsed costing their employees and investors a fortune.
If we don't want corporate failures then we must have a regulated industry. I don't see much grey between the two extremes.
If you attempt to "assist your competitor" by "backing off" then you will fail.
After US domestic deregulation some 200 new carriers emerged and around the same number were either taken over by the majors or collapsed costing their employees and investors a fortune.
If we don't want corporate failures then we must have a regulated industry. I don't see much grey between the two extremes.
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We are suposed to have a deregulated industry, but I have to agree with Spuds.
The regulator does and has stated that it favoures one player in this game.
No prises for the answer.
And it is the one who has jacked up the prices after an airline collapsed.
:o 
The regulator does and has stated that it favoures one player in this game.
No prises for the answer.
And it is the one who has jacked up the prices after an airline collapsed.
:o
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I find it a bit rich to hear all this bleating from the Ansett(or ex An) camp,about the terrible treatment they are receiving from those nasty people at Qantas.
my goodness,I can remember the collusion and predatory pricing from the very same people,when I was working for Compass1.
I remember how they held celebration parties after they used Operation SEWN UP to screw my company and all my work mates.
Well you pathetic little people,the old saying is true;If you live by the sword,that is the way you die.
Good riddance to the demise of this rotten company.Do us all a favour and stop your whining.
my goodness,I can remember the collusion and predatory pricing from the very same people,when I was working for Compass1.
I remember how they held celebration parties after they used Operation SEWN UP to screw my company and all my work mates.
Well you pathetic little people,the old saying is true;If you live by the sword,that is the way you die.
Good riddance to the demise of this rotten company.Do us all a favour and stop your whining.
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No one has been targetted Spuds,but after having been shafted in An and Compass by the very same little people who are now worried about what they are now going to do with their lives;dont come looking for sympathy when you brought it on yourselves.I dont necessarilly include you,but if you are one of them,well tough luck.
The point I make,is that while you had that horrible media tycoooon,you had influence,but he has gone.
The point I am making,is you all went for the easy dollar at other peoples expense and jobs,etc etc.You cared nothing for anyone but yourseleves;you brought in foreigners and actively prevented us from working,not only in our own respective companies,but our country,so you will get your just deserts.I for one will make sure that I do everything I can to make you pay.If you think that is nasty;boy are you right.By the way,I have already stopped a number of you people,because we do have some influence.bye.
The point I make,is that while you had that horrible media tycoooon,you had influence,but he has gone.
The point I am making,is you all went for the easy dollar at other peoples expense and jobs,etc etc.You cared nothing for anyone but yourseleves;you brought in foreigners and actively prevented us from working,not only in our own respective companies,but our country,so you will get your just deserts.I for one will make sure that I do everything I can to make you pay.If you think that is nasty;boy are you right.By the way,I have already stopped a number of you people,because we do have some influence.bye.
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BUSINESS
WEDNESDAY, 17 OCTOBER 2001
B U S I N E S S S T O R Y
Air NZ just as guilty as Qantas: Inglis
17 October 2001
By TRACY NEAL
Origin Pacific Airways boss Robert Inglis says Air New Zealand is as guilty of the same predatory pricing tactics it is accusing Qantas of.
Mr Inglis was responding to Air NZ acting chairman Jim Farmer's statement that any more efforts by Qantas to crush Ansett II and trans-Tasman competition would not be tolerated.
Dr Farmer, a Queen's Counsel, would not rule out Air NZ legal action against Qantas for what he called predatory pricing, and efforts to "crush Ansett Mark II".
Mr Inglis, whose airline is aligned to Qantas through a code-sharing deal and acts as a feeder service for the Australian carrier, said Air NZ's claims of predatory pricing by Qantas against Ansett had a hollow ring.
"These are similar to the tactics Air NZ has used for years against its competitors in New Zealand.
"Excess capacity, discount fares, new services and heavy advertising in relation to our routes are common Air NZ tactics that we have had to meet ever since we began our scheduled operations, and I have no doubt would have played a significant part in the demise of Kiwi Air and Tasman Pacific to name just two other Air NZ competitors," Mr Inglis said.
He said it could also be attributed to the downfall of cut-price commuter airline CityJet, which entered the market with very cheap fares but fell over less than a year later.
Former CityJet director Paul Webb said on Monday that predatory pricing was only partly to blame for the airline's failure. Civil Aviation Authority bureaucracy proved a bigger battle in the end, he said.
"I recall Origin, Air NZ and Ansett NZ using predatory pricing tactics to protect market share when competing against CityJet.
"While Qantas may be using the practice of predatory pricing, it might only be a result of ensuring the long-term survival in an industry scattered with failure," Mr Webb said.
Air NZ-owned Ansett Australia was put into voluntary administration last month, causing thousands of job losses.
Ansett Mark II was relaunched by Ansett Australia's voluntary administrator as a small budget carrier. It is the result of Air NZ agreeing to enter a commercial arrangement with Ansett as preferred partner and provider of intellectual property to help Ansett's administrators.
Aviation experts said Air NZ would only prosper when it could feed trans-Tasman passengers into domestic services, other than main competitor Qantas.
WEDNESDAY, 17 OCTOBER 2001
B U S I N E S S S T O R Y
Air NZ just as guilty as Qantas: Inglis
17 October 2001
By TRACY NEAL
Origin Pacific Airways boss Robert Inglis says Air New Zealand is as guilty of the same predatory pricing tactics it is accusing Qantas of.
Mr Inglis was responding to Air NZ acting chairman Jim Farmer's statement that any more efforts by Qantas to crush Ansett II and trans-Tasman competition would not be tolerated.
Dr Farmer, a Queen's Counsel, would not rule out Air NZ legal action against Qantas for what he called predatory pricing, and efforts to "crush Ansett Mark II".
Mr Inglis, whose airline is aligned to Qantas through a code-sharing deal and acts as a feeder service for the Australian carrier, said Air NZ's claims of predatory pricing by Qantas against Ansett had a hollow ring.
"These are similar to the tactics Air NZ has used for years against its competitors in New Zealand.
"Excess capacity, discount fares, new services and heavy advertising in relation to our routes are common Air NZ tactics that we have had to meet ever since we began our scheduled operations, and I have no doubt would have played a significant part in the demise of Kiwi Air and Tasman Pacific to name just two other Air NZ competitors," Mr Inglis said.
He said it could also be attributed to the downfall of cut-price commuter airline CityJet, which entered the market with very cheap fares but fell over less than a year later.
Former CityJet director Paul Webb said on Monday that predatory pricing was only partly to blame for the airline's failure. Civil Aviation Authority bureaucracy proved a bigger battle in the end, he said.
"I recall Origin, Air NZ and Ansett NZ using predatory pricing tactics to protect market share when competing against CityJet.
"While Qantas may be using the practice of predatory pricing, it might only be a result of ensuring the long-term survival in an industry scattered with failure," Mr Webb said.
Air NZ-owned Ansett Australia was put into voluntary administration last month, causing thousands of job losses.
Ansett Mark II was relaunched by Ansett Australia's voluntary administrator as a small budget carrier. It is the result of Air NZ agreeing to enter a commercial arrangement with Ansett as preferred partner and provider of intellectual property to help Ansett's administrators.
Aviation experts said Air NZ would only prosper when it could feed trans-Tasman passengers into domestic services, other than main competitor Qantas.
