‘Astounding’ fuel cost

Press, Volume CXIII, Issue 33381, 13 November 1973, Page 2

‘Astounding’ fuel cost

(N.Z. Press Association) AUCKLAND, Nov. 12. “Astounding increases in the price of aircraft fuel would lead to increases in world air fares, possibly as early as January,” International Air Transport Association officials said in Auckland today. The assistant directorgeneral (technical) of I.A.T.A. (Dr R. R. Shaw) said some airlines faced fuel price increases of as much as 100 per cent more than the cost last year. The average price increase being reported by nember airlines was at least 50 per cent. Dr Shaw said that last year fuel made up 11 to 12 per cent of the cost of running an airline. On that basis a

10 per cent fuel price increase must be met by a 1.2 per cent increase in revenue. I.A.T.A. members were interested in working out a formula under which fare increases to keep up with possible further increases in fuel prices could be introduced automatically. A statement from the executive after the meeting said that because airlines could not use alternative sources of energy to fly aircraft Governments must give priority to scheduled airlines in the allocation of fuel supplies. Speaking after a meeting of the I.A.T.A. executive committee, Dr Shaw said the shortage of fuel was a serious problem. The public relations director of I.A.T.A. (Mr A. Vandyk) said some delegates to the conference wanted a i formula for fare increases to

be settled this week, so that a postal ballot of member airlines could be held quickly, and fare increases could be put into effect as soon as possible. In this way a formal meeting of I.A.T.A. membem to discuss fares in December might not be needed, and the desire of some members to introduce new fares in January might be met.