The Airports Association is taking aim at the cost of Air New Zealand's domestic airfares. 

It's calling on the Government to set up an independent airfare monitoring system. 

But the Board of Airline Representatives disagrees with claims that the domestic market isn't set up to be competitive. 

Executive Director, Cath O'Brien told Mike Hosking that policy settings allow any Australian airline to set-up shop tomorrow if they want to. 

She says the reason they haven't, is because New Zealand's an expensive place to operate in and make a profit. 

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