Govt Rejects Canadian Airlines Proposal

Press, Volume CIX, Issue 31982, 8 May 1969, Page 16

Govt Rejects Canadian Airlines Proposal

<New Zealand Press Association)

AUCKLAND, May 7.

Proposals which might have allowed Canadian Pacific Airways to resume its service between Auckland and Vancouver have been rejected by both Air New Zealand and the New Zealand Government.

Talks on the subject had not been broken off at Ministerial level and might still go on, the Minister of Transport (Mr Gordon) said tonight. The proposition put to Air New Zealand on promotional activities by Canadian Pacific was not acceptable to either Air New Zealand or the New Zealand Government, said Mr Gordon.

This proposition was followed at a later stage by Ministerial talks between the Canadian Minister of Industry, Commerce and Trade (Mr Pepin) and Mr Gordon. “Mr Pepin had a full understanding of New Zealand's position when he left this country, and he was going back to talk to the Canadian Minister of Aviation.” Mr Gordon said he did not want to say too much on the subject until matters were further advanced. Mr E. S. Prentice, New

Zealand manager of C.P.A., said he was not sure what the airline would do. The next step would be entirely over to the head office, and he would have to wait for instructions. C.P.A. suspended its fortnightly service between Vancouver and Auckland three weeks ago. At that time it was awaiting the decision which Mr Gordon gave yesterday, in the hope that it would be favourable and allow the airline to retain landing rights in New Zealand. Last September Mr Gordon said the 18-year-old civil air service agreement between

Canada and New Zealand was ended because the airline had brought only 800 passengers a year to New Zealand. Air New Zealand had not taken up its rights to run a service from Honolulu to Vancouver, and Canadian Pacific' had been taking a large share of the Auckland-Honolulu traffic that might otherwise have gone to Air New Zealand and its associated companies. In February this year Canadian Pacific proposed a $250,000 advertising programme in Canada to bring New Zealand to the attention of tourists.