AUSTRALIAN AIR FARES

Press, Volume LXXXIV, Issue 25496, 17 May 1948, Page 3

AUSTRALIAN AIR FARES

INCREASE OPPOSED BY PRIVATE FIRM ■ “The Press” Special Service

OPOTIKI. May 15. “We are accustomed to think of price control as a device to restrict prices,” said Mr W. Sullivan, M.P. for Bay of Plenty, in a public address tonight. “but it was made clear to me, while in Australia recently, that it can be used both ways.

“Only a few months ago the Australian price-fixing authority for air transport, the Civil Aviation Department, ordered air lines, including the Government-owned line, to raise fares by 20 per cent. The Governmentowned company, Trans-Australia Airlines, had lost £500,000 the previous year, and was trying to make ends meet at the expense of the public. “Fortunately for the travelling public, a privately-owned company, Ansett Airways, refused to increase fares, even when threatened by the Minister of Civil Aviation, Mr Drakeford. that he would consider action to compel it to do so. The sequel was that fares were reduced by the amount they had been raised. Later the Ansett Company announced its intention to make a further cut in fares ,of 15 per cent., subject to official permission. “We have much the same thing here in New Zealand as regards petrol, said Mr Sullivan. “The Government ■fixes both the minimum and maximum prices. Oil companies cannot reduce prices, even if they want to.”