Heath’s warning to airlines

Press, Volume CXII, Issue 33032, 27 September 1972, Page 15

Heath’s warning to airlines

(N.Z P A.-Reuter—Copyright)

LONDON, September 26.

The British Prime Minister (Mr Heath) warned more than 300 executives of the world’s airlines yesterday that they must bring down fares, or lose their customers to the cheap-flight charter companies.

Speaking at the opening of the twenty-eighth annual meeting of the International Air Transport Association in London, Mr Heath took up a point made earlier by Mr Keith Granville, deputychairman of the recentlycreated British Airways Board and this year’s president of the I.A.T.A. Mr Granville had spoken of the need for realism on the issue of fare levels, and Mr Heath said: “In my experience, realism today means, all too often, putting prices up. It should mean straining every nerve to find ways and means of bringing prices down. "Many Governments, not

least our own, are taking the lead in promoting new charter rules — the United Kingdom Civil Aviation Authority is not alone in its determination to see liberal new rules in operation next year.

“Many voices are saying that changes such as these will mean the end of scheduled services as we know them today. Maybe, but what we must be as concerned with is the shaping of the kind of services that the public wants. “Scheduled services will no doubt continue to serve those with a need for flexible booking, but already there are many who do not require this expensive facility, and who do not see why they should have to pay the added cost.

“The consequence is obvious: if the scheduled carriers do not provide simple and inexpensive transport, these passengers will look elsewhere, and no-one could blame them.”

The meeting heard a report by the director-general of the 1.A.T.A., Mr Knut Hammarskjold, who said: “The industry is experiencing profitless growth. Nevertheless, despite the persistent problems confronting the airlines, there appears to be justification for some cautious optimism.” Mr Hammarskjold appealed for more concerted government action to beat hijacking, and for closer world cooperation on all aspects of airline economics, from manufacturing aircraft to selling tickets for air travel.