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Friday, September 10

Wellington airport taxi arrangements unlikely to breach Commerce Act

  The Commerce Commission has advised complainants regarding new arrangements for taxis and shuttles at Wellington International Airport Limited that these arrangements are unlikely to breach the Commerce Act.

The Commission received complaints following the airport’s move to a new layout for its taxi and shuttle forecourt, including the awarding of tenders for dedicated taxi spaces immediately outside the terminal doors and an exclusive provider arrangement for non-booked shuttle services.

Complainants alleged that as Wellington Combined Taxis now had the prime spot right outside the terminal doors there was an unfair competitive advantage. In relation to shuttles it was alleged that an exclusive contract with Super Shuttles cut out other providers.

The Commission has examined the facts and concluded that neither arrangement is likely to breach the Commerce Act.

“Consumers still have a choice of taxi companies; they can simply walk past the Wellington Combined Taxi rank if they wish. With shuttles, as there is a range of other transport options, the shuttle arrangement is not likely to create a competition concern. Legitimate efficiency gains and improved customer service have also been identified as reasons for the exclusive shuttle arrangement,” said Commerce Commission General Manager Enforcement, Kate Morrison.

The Commission has concluded its preliminary investigation and will not be investigating further.