AIR NEW ZEALAND - ANSETT RESPONSE TO QANTAS - IMPULSE APPROVAL

The Air New Zealand Ansett Airline Group will be responding vigorously to the acquisition of Impulse Airlines by Qantas, approved by the Australian Competition and Consumer Commission, the Group's President and CEO Gary Toomey said.

"We will be studying the details of the ACCC's decision over the weekend to determine if our immediate response should be legal, commercial, simply competitive, or some combination," Mr Toomey said.

"The Qantas Impulse merger extends Qantas' competitive power in the Australasian market and will affect airline services on both sides of the Tasman. It increases Qantas' strength in the Australian domestic market and enables them to enter the New Zealand domestic market in their own right.

"We must, and will, take steps to challenge Qantas' expanding strength in both Australia and New Zealand.

Mr Toomey added: "We have been developing plans for a competitive response drawing on our own group resources, and a commercial response which could involve our association with another carrier in the Australian market. We are currently awaiting legal advice on whether there are other opportunities to challenge the merger approval announced today.

"Next Monday, I will be announcing another set of developments in Air New Zealand's domestic services, and on Tuesday I will be in Australia determining our next steps there," Mr Toomey said.