The Press WEDNESDAY, DECEMBER 6, 1972. Air fares across the Pacific

Press, Volume CXII, Issue 33092, 6 December 1972, Page 18

The Press WEDNESDAY, DECEMBER 6, 1972. Air fares across the Pacific

Almost four months have elapsed since Air New Zealand made public its intention to press for substantial reductions — up to 50 per cent for pre-paid tickets —in air fares on Pacific routes. No reductions have yet been made, and the latest discussions between Air New Zealand and the Australian national airline, Qantas, have apparently not produced an agreed schedule of fares which the two countries’ representatives could recommend to the International Air Transport Association. When two airlines which work closely together take so long to reach agreement, it is scarcely surprising that the dozens of airlines serving the Pacific have so far been unable to agree. Fare structures in the Pacific and elsewhere are influenced by fares on services across the Atlantic, which account for more than a third of all international air traffic. Three separate seasons are now recognised by I.A.T.A. members for the purpose of fixing transatlantic fares: summer, winter, and “shoulder” seasons. The summer fares — the highest — extend over three months; the winter fares — the lowest — five months; and the "shoulder” fares — intermediate — four months. The New York-London winter fare, economy class, of SNZIBO.SO is $67.20, or 27 per cent, lower than the summer fare. It works out at 5.2 cents a mile, compared with 7.2 cents a mile for the summer fare. Trans-Pacific fares are the same throughout the year. Both the Sydney-San Francisco fare — $494.60 — and the Auckland-Los Angeles fare — $460.20 — work out at 6.6 c a mile. The introduction of summer and winter fares — though probably not “ shoulder ” season fares — might well be considered in the near future by the airlines in the Pacific. For those lines such as Qantas and Air New Zealand whose routes are mainly in the South Pacific, this change would suit both their own nationals who like to escape to the Northern Hemisphere during the southern winter and price-conscious North Americans reluctant to pay the summer fare to Europe. A winter holiday in New Zealand at a lower price than a summer holiday in Europe might appeal to many Californians. Both Qantas, which needs many more passengers to fill its jumbo jets, and Air New Zealand, which fears the loss of passengers to airlines owning jumbo jets, have more incentive than ever before to reduce fares in the Pacific. It is to be hoped that they will soon resolve their remaining differences on details of their desired new fare structures so that they can speak with one voice at their next meetings with other Pacific airlines. As Government-owned airlines they can afford to take a longer-term view of profitability than an airline owned by private shareholders. A reduced profit or even a loss on their routes to North America for a year or two should be acceptable to their respective Governments, if fare reductions produce satisfactory increases in tourist traffic, particularly in the winter season.