Papua New Guinea ICCC rules against Air Niugini and Philippine Airlines proposed codeshare

21 January, 2020

Papua New Guinea's Independent Consumer and Competition Commission (ICCC) CEO Paulus Ain reported: "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" rather than in a codeshare alliance (The National/Post Courier/Papua New Guinea Today, 17-Jan-2020). Key considerations include:

  • The aviation market is already competitive, and Philippine Airlines holds 44% market share;
  • There is potential to grow the route in summer, with its current total of nine weekly frequencies sufficient to maintain or improve the service;
  • The proposed codeshare did not impose any costs of unsold capacity;
  • A reduction in airfares was anti competitive due to Air Niugini and Philippine Airlines being the sole operators of the route. Joint marketing between the two airlines would lead to increased airfares;
  • Air Niugini did not propose what increased revenue would do for public benefit and how successful it previously was on the route.