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NZ legal
poser on
air deal
SYDNEY: Air New Zealand
yesterday raised legal action
against Australia as an option
for denying it the right to op
erate in Australia's domestic
market.
Managing director Jim
McCrea said, although the two
countries were like old friends,
legal action "was an option".
In a later clarifying state
ment, he said: "We are putting
our faith in the government-to
government negotiations and
we are fully supportive of the
process now in train."
His comments follow a se
ries of heated exchanges be
tween the two countries over
Australian Transport Minister
Laurie Brereton's recent deci
sion to rescind the 1992 open
skies policy less than a week
before it was to begin.
"Not getting access at this
point into Australia is a disap
pointing setback and we will
pursue the issue," Mr McCrea
said.
Mr Brereton last week froze
a memorandum of understand
ing which would have enabled
Air New Zealand to fly domes
tic routes within Australia
from November 1.
Mr McCrea rejected com
ments by Australian Prime
Minister Paul Keating that the
relationship between Australia
and New Zealand had con
sisted of the latter being "all
take and no give".
"We are little people who
are seen to be aggressive but
all we are actually doing is re
dressing the balance in the
market — we are doing a lot
for the Australian economy,"
Mr McCrea said.
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