Air Fare Rises Not Yet Decided

Press, Volume CI, Issue 29802, 19 April 1962, Page 14

Air Fare Rises Not Yet Decided

(From Our Own Reporter!

WELLINGTON. April 18.

Although unofficial sources suggest that the new scales of airport and airways charges in October will mean higher fares, officials of the National Airways Corporation and the Civil Aviation Administration said today they were unable to comment on the effects of the increases.

The general manager of N.A.C. (Mr D. A. Patterson) said that the increased charges must be passed on to passengers through higher fares. The extent and method of the rise had not yet been I considered by officers. After this had been done, it would have to be discussed by the directors of the corporation. Asked whether the rise of 2s on an average fare of £6, mentioned in the statement by the Minister in Charge of Civil Aviation (Mr McAlpine) would be correct for N.A.C., Mr Patterson said that the fare structure was complex. The manner in which the outgoing from the corporation might best be shared between short and long-stage services had yet to be worked out.

Besides the increase in airport charges, to amount to £90,000 in a full year, said Mr Patterson, there would also be increased airways dues for C.AA. facilities for air traffic control, communications, safety, etc., amounting to £78.000. Overseas as well as internal service operators would be concerned in both extra charges. It is understood that the corporation’s working loss on the year ended March 31 will be more than £lOO,OOO. Some of this is not a continuing loss, but in any readjusiment of fares the desirability of striking a balance next year must be paramount. Last year N.A.C. paid an estimated £480.000 in airport and airways charges. Corporation officers are

also concerned at the likelihood that a too steep rise in air transport costs will lead to a reduction in the number of travellers. “Too many empty seats are already flying our internal airlanes.” said an official.