Media Release

25 November 2005

Air New Zealand Ruling Sets Precedent for Fair Trading

New Zealand First Deputy Leader and Labour spokesperson Peter Brown has welcomed the court ruling that Air New Zealand misled the public over fares by not fairly including extra costs when it advertised fares.

Mr Brown said that the decision sets an important precedent for complying with the Fair Trading Act and stating the true pricing of airline services and other consumer products and services.

“All businesses must be required to openly and obviously state the true cost of what they are selling, and consumers should be able to rely on the costs and promises they see advertised,” said Mr Brown.

“Part of New Zealand First’s confidence and supply agreement with the Government requires a review of the conditions applying to airline advertising to ensure that they are required to advertise all inclusive costs of their offers.

“It is essential that any additional costs, as well as operating costs, are included in the prices advertised.

“This ruling gives added impetus to our endeavours in dealing with this misleading practice – and having it apply to all airlines operating in New Zealand," concluded Mr Brown.

ENDS

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