New Fares Attract More Passengers

Press, Volume CIV, Issue 30686, 27 February 1965, Page 16

New Fares Attract More Passengers

“The Press’* Special Service AUCKLAND, Feb. 26.

South Pacific Airlines of New Zealand reports a 25 per cent increase in passenger traffic over the last four months since the introduction of economy fares and more services.

After the introduction of the two-scale fares on October 13, 1809 passengers used economy fares in the first 13 weeks.

For this period, 13,166 passengers were carried by S.P.A.N.Z. compared with 10,309 in the similar period in 1963-64 and 10,339 in 196263.

S.P..A.N.Z. had carried out a careful survey of the passengers flying under the economy fare plan, said the general manager, Captain R. D. Daniell, and had found that 60 per cent were newly attracted to air travel by the reduced rates.

Of this proportion, 40 per cent said they would otherwise have travelled by public surface transport and 20 per cent by private car.

The remaining 40 per cent would otherwise have flown with National Airways Corporation. Captain Daniell said it was estimated that in a full year up to £30,000 worth of business could be attracted from N.A.C.

“However,” he said, “the true loss to N.A.C. is difficult to assess as the corporation would have sold most of these seats anyway, especially during peak periods.” Captain Daniell said the £30,000 was nowhere near the figure of £170,000 which N.A.C. had claimed it would lose to S.P.A.N.Z. through introduction of the two-fare system. It was also offset by the fact that S.P.A.N.Z. paid more than £30,000 a year to N.A.C. for engineering services.

Discussions had begun with the Government, he said, with a view to working out a longterm role for S.P.A.N.Z. t