Air Traffic Rights Policy Endorsed

Press, Volume CIX, Issue 31982, 8 May 1969, Page 26

Air Traffic Rights Policy Endorsed

(New Zealand Press Association)

WELLINGTON, May 7.

The Government’s policy of granting traffic rights to overseas airlines only in accordance with normal international criteria—namely, that there should be equivalent advantages to be obtained in traffic rights for New Zealand’s own international airline—was endorsed by the transport committee of the National Development Conference today.

In an appendix to its report, just released, the committee said this was likely to result, as it had in the past, in a diversified and stable pattern of services which New Zealand could influence

in ways that served the pur poses of the country. “We do not imply that the Government should attempt to secure a monopoly for Air New Zealand, but any such aim would be impossible under the very system of bilateral bargaining which we are commending. New Zealand is already served by a multiplicity of airlines.” The appendix said it had been reported to the committee that virtually all the earnings of Air New Zealand represented direct earnings or savings of overseas funds. “Thus, if a foreign passenger uses the services of Air New Zealand, there is an actual gain of overseas funds, while, if a New Zealander uses Air New Zealand instead of a foreign airline, the saving of overseas funds is so direct as to be equivalent to earnings.” Even in the engineering field, Air New Zealand was performing services for itself and for others which would otherwise have to be done overseas; and in numerous other ways, the company serviced foreign airlines in New Zealand. The gross-eamings/savings of overseas funds amounted to s34m a year at present “We are informed that al! costs/ in overseas funds (including servicing and repayment of loans or the purchase of aircraft) approximate 50 per cent of these total earnings, producing at present a net gain in overseas funds of the order of sl7m.” At the high growth rate of the industry, these figures might be expected to double in about five years.