Papua New Guinea's Independent Consumer and Competition Commission (ICCC) granted (04-Jun-2018 ) authorisation to Air Niugini to enter a codeshare agreement with Fiji Airways between Port Moresby and Nadi via Honiara, for a three year period. The ICCC stated it is satisfied the codeshare will "result in more benefits to the public outweighing the potential detriments to competition in the market and other detriments". The flights will be operated by Air Niugini, which is the sole carrier on the route. To minimise any potential anti-competitive effects and other related detriments to the public, the ICCC has imposed certain conditions:
- Air Niugini must price and sell its codeshare services independently of Fiji Airways;
- Air Niugini must revise its wholesale prices offered to Fiji Airways down once profitability is reached through increased passenger and freight volumes;
- If either of the parties increases airfares excessively without any valid justification on the codeshare services, the ICCC will review the authorisation. The ICCC will then consider whether the balance between public detriment and public benefit still favours net public benefit;
- Air Niugini is to submit annual codeshare passenger and freight traffic volume reports to the ICCC for the route. [more - original PR]