By: AirTravellerPH Staff
The Papua New Guinea Independent Consumer and Competition Commission (ICCC) has refused a proposed codeshare agreement between Air Niugini and Philippine Airlines (PAL) on Port Moresby - Manila air services. The Papua New Guinea national newspaper reported that this agreement would stifle competition, thus, may result to a negative impact on the travellers.
"The ‘free sale’ codeshare arrangement is not very competitive, hence, it will lessen the level of competition that currently exists in the market. The ICCC considers that in the present circumstances, it is better to have Air Niugini and Philippine Airlines continue to operate independently on the Port Moresby and Manila route," said ICCC Commissioner and Chief Executive Officer Paulus Ain.
In a report by Ch-Aviation, the ICCC has noted numerous reasons for the declining of the code share agreement. According to the ICCC, the market was already competitive given PAL's current market share of 44% following the increase in capacity and reduction of fares. Based on market data, the route shows the potential for further traffic stimulation.
Air Niugini and PAL combined have 9 weekly flights from Papua New Guinea to Manila, 4 belonging to PAL and 5 to Air Niugini. The ICCC noted that this is sufficient enough to maintain and improve the current service level enjoyed by passengers flying between both cities.
According to Ch-Aviation, other factors that were pointed at were:
The ICCC will finalize its verdict on the codeshare on January 27.