N.A.C. fares will rise from Dec. 1

Press, Volume CXI, Issue 32775, 27 November 1971, Page 2

N.A.C. fares will rise from Dec. 1

(N.Z. Press Association) WELLINGTON, Nov. 26. All National Airways Corporation passenger fares will increase by SI from December 1, the Air Services Licensing Authority decided today. An N.A.C. application for the $1 increase was heard by the authority today. It was opposed by the New Zealand University Students’ Association and a farmer, Mr B. H. Kerrigan. ANOTHER LIKELY Passenger fares are likely to increase again next year, also. “It will be necessary to make a further adjustment to fares next year,” the deputy general-manager of N.A.C. (Mr L. L. Ford) told the authority. The application of the ' $1 increase for a full year would, on the present traffic level, produce $1,275,000 after allowing for costs, said Mr Ford. However in the next financial year, based on the additional costs which were the subject of the application, there still would be a continuing loss of between $500,000 and $1,000,000 depending on other increased costs.

A fare adjustment next year would depend on traffic growth, rationalisation of uneconomic services on sec-

ondary routes and wage adjustments. TRAFFIC GROWTH STATIC

For the six months to September 11, 1971, NA.C. showed a loss of $121,678, against a budgeted loss of $29,289. Revenue failed to achieve the budget target by $202,057 but was offset by savings in expenditure of $109,668. “As no traffic growth has occurred, it is expected that revenue will continue to fall below budget targets for the remainder of the year,” said Mr Ford.

The increase in revenue from the new fare rise, allowing for costs, was estimated to be $400,000. This would reduce the loss for the financial year ending March, 1972, to $’861,305, from $1,261,305, he said.

STUDENT-FARE WANTED Incentive discount fares for students would help the N.AC. improve its economic position, the president of the University Students’ Association (Mr D. Cuthbert) said in the students’ submission to the authority. Mr Cuthbert said that the. authority was the only safeguard to N.A.C. pricing itself

out of the travel market for young people.

He said that fare increases had been particularly heavy over the last few years. In 1969 there was a 6 per cent increase; last year, a If per cent increase; this year, a 12 J per cent increase and the latest proposal would mean increases of well over 15 per cent on some routes.

Socialist Party.—Mr G. H. Andersen, secretary of the Northern Drivers’ Union, has been elected acting president of the New Zealand Socialist Unity Party.—(P.A.)