‘Fallacies’ In Canadian Plan

Press, Volume CIX, Issue 31983, 9 May 1969, Page 20

‘Fallacies’ In Canadian Plan

(N.Z. Press Association) AUCKLAND, May 8. The proposals of Canadian Pacific Airlines for promoting New Zealand in a bid to retain landing rights here would not remotely - approach the benefits predicted by the airline, an Air New Zealand spokesman said today.

The New Zealand Government has rejected the C.P.A. proposals and has cancelled the airlitie’s landing rights.

The general manager of Air New Zealand (Mr C. J. Keppel), asked why his airline did not put the C.P.A. offer of a promotional campaign to the test, said: “C.PA.’s proposal involves a doubling of previous flight frequency to New Zealand—something not generally realised.

“This would double the adverse affect on Air New Zealand and also the country’s overseas exchange ‘ position would be twice that which was sufficient to cause the New Zealand Government to terminate the agreement. “The granting of air rights is a government prerogative and is negotiated on a gov-ernment-to-government basis. On a company basis, however, Air New Zealand has studied

the C.P.A. promotional proposals. These contained obvious fallacies and could not be recommended. “Over all, C.P.A. would continue to take more out of New Zealand than it contributed, even if the proposals were fully accepted and implemented. “There would certainly be no benefit for New Zealand tourism remotely approaching that predicted by C.P.A.” Mr Keppel said most Canadian tourists visiting the South Pacific would include New Zealand in their itinerary regardless of the termination of C.P.A.’s landing rights. Canadians could come to New Zealand on any day of the week, whether C.PA. operated to Auckland or not.

There were good connections with C.P.A. at Hawaii, Fiji and Sydney. There would be few advantages to Air New Zealand in the C.P.A. offer to provide, direct connections twice a week from Vancouver to Air New Zealand services at Honolulu, as well as one direct C.P.A. service weekly between Vancouver and Auckland. It had been shown to C.P.A. that figures of extra revenue for Air New Zealand could not be sustained. Air Canada had excellent daily services from the eastern states to the West Coast Of the United States, and the value of Air Canada’s promotion should not be underestimated. “We see no deterrent effect on the tourist industry by

the termination of C.P.A.’s fortnightly service,” Mr Keppel said. The small flow of visitors brought here by C.P.A. in the past would continue to come by the several other routes and services available. “C.P.A.’s contribution to New Zealand tourism in the last 18 years has been minimal and in fact it has taken more out of New Zealand than it produced,” he said.

Air New Zealand and Government promotions in Canada would continue to produce more Canadian visitors to New Zealand than C.P.A. had ever produced, or could in the future.

There were plenty of suitable alternatives for the transport of New Zealand meat exports to Canada.