The codeshare arrangement between Airlines PNG and Virgin Australia should be allowed to continue, according to a draft decision released yesterday by the Papua New Guinea Independent Consumer and Competition Commission (ICCC).

Under the agreement originated in 2008, the Papua New Guinea-owned airline is able to purchase and re-sell seats on Virgin’s flights between Port Moresby and Brisbane.

‘The Commission has provisionally assessed the arrangement as enhancing, rather than lessening, competition,’ said the  ICCC Commissioner and Chief Executive Officer, Associate Professor Billy Manoka in a statement. ‘The arrangement will provide cost savings to assist the parties compete with Air Niugini/Qantas, the much larger incumbents on that route.’

The draft ICCC decision is now open to submissions from interested parties, after which the ICC will make a final determination on the arrangement.

‘I encourage interested parties and any member of the public to make submissions on or before March 22. The process is both transparent and consultative, like most processes of the Commission, and it values input from all sections of society in making its decisions,’ said Manoka.