Air New Zealand and Qantas are likely to go to Australia's Competition Tribunal to obtain approval for a proposed code share agreement; after being knocked back by the competition watchdog across the Tasman.

In a draft decision, the Australian Competition & Consumer Commission said on Friday that consumers would face higher air fares and fewer flying options at key times.

Air New Zealand's management will meet on Monday to consider their response to the ACCC's 169 page report....