N.A.C. WANTS 6p.c. FARE INCREASE
(A’etr Zealand Press Association) WELLINGTON, April 29. National Airways Corporation fares will increase by 6 per cent from June 1 if the airline is successful in an application to the Air Services Licensing Authority.
The N.A.C. chairman (Mr A. F. Gibcison) said in a statement today that the corporation was seeking an increase of 6 per cent on passenger fares with a minimum of $1 on any one fare. An application would be made for a 10 per cent in-
I crease in minimum freight [ charges. A similar increase in charter rates would also be sought. If the passenger fare application is successful the in-j ■ crease will be the sixth since January, 1960. making a total increase in nine years of 33 J ; per cent. Mr Gilkison said the corporation had borne the bur-!
iden of higher salary rates iand many other increases I since devaluation. To avoid ; a substantial loss this finan-: Icial year it was compelled! Ito apply for a fare rise. , The salary bill and in-! icreases in insurance charges and costs caused bv devaluation totalled $2,572,000 for! the present financial year. If [ this was to be recovered a fare and charter increase of 121 per cent was necessary. But by the increases it was seeking, coupled with economies in internal costs, it was hoped a balance could be reached. Fares had been increased; by 10 per cent in 1960, 5 per cent in 1962 and 1966, and 2j per cent and 5 per cent in 1967 Overall these were! lower than the movement ini wage rates and the cost of living index during the same period. The charter aircraft rates had not been raised when the last fare increase was made. The new charter rates sought would be $792 an hour for a Boeing, $346 for a Viscount, $lB5 for a Friendship and $lO9 for a DC3. The minimum freight rates would increase from 70c to 80c for express freight and other categories from 55c to 65c.
The longest flight (Kaitaia to Invercargill) would result in a fare increase of $3 and the shortest (Wellington to Blenheim) by $l.
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Bibliographic details
Press, Volume CIX, Issue 31975, 30 April 1969, Page 1
Word Count
358N.A.C. WANTS 6p.c. FARE INCREASE Press, Volume CIX, Issue 31975, 30 April 1969, Page 1
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