IDEAS home Printed from
   My bibliography  Save this article

Application of the public benefit test to the air New Zealand/Qantas case


  • Tim Hazledine


The proposed cartel between Air New Zealand was rejected by the NZ Commerce Commission, supported on appeal by the High Court. The case was an important and interesting application of the Net Public Benefit test in competition policy, under which the assessed costs or detriments of a determined substantial lessening of competition (SLC) are weighed against any offsetting benefits, for the purposes of authorisation. In this paper quantification of the detriments is shown to depend on the identity of those affected - consumers/producers; New Zealand/Australian/foreign. Impacts on the long-run performance of markets and on related markets were claimed and are evaluated. The basic legitimacy of the public benefit test in this context is assessed, in terms both of the purpose of the NZ anti-trust legislation and of the economics of long-term market performance. The much simpler traditional SLC-focussed implementation of anti-trust might perform better overall.

Suggested Citation

  • Tim Hazledine, 2004. "Application of the public benefit test to the air New Zealand/Qantas case," New Zealand Economic Papers, Taylor & Francis Journals, vol. 38(2), pages 279-298.
  • Handle: RePEc:taf:nzecpp:v:38:y:2004:i:2:p:279-298 DOI: 10.1080/00779950409544407

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    1. W A Razzak, 2004. "Towards Building A New Consensus About New Zealand’s Productivity," GE, Growth, Math methods 0405002, EconWPA.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Hazledine, Tim, 2006. "Competition Policy for the Trans-Tasman Air Travel Market: the 2005 ACT Decision and its Implications," Working Paper Series 3836, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:nzecpp:v:38:y:2004:i:2:p:279-298. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.