I.A.T.A. seeking fare rises

Press, Volume CXIII, Issue 33384, 16 November 1973, Page 1

I.A.T.A. seeking fare rises

(N.Z. Press Association) AUCKLAND, November 15. A 6 per cent increase in all air fares and air cargo sought by the International Air Transport Association from January 1 is likely to be just the first of a number of fare rises caused by the world oil shortage.

Clearly worried by the continuing rise in the cost of aircraft fuel, the LA.T.A. annual meeting in Auckland has brought in special measures to have the increase made effective as soon as possible. The 6 per cent increase was announced today by the chairman of the LA.T.A. traffic advisory committee, Dr Fabrizio Serena, of Alitalia. He said that the committee’s proposal for speeding up its introduction — by having a ballot of member airlines on the increase by cable instead of a planned meeting

on December 12 — had met with approval from delegates. If the 6 per cent rise was approved by members, as appeared likely, LA.T.A. would then have to seek {approval for it from Governiments. { Dr Serena said that I although some airlines might need a bigger increase than 6 per cent to recover the I extra fuel costs, and some {might need a smaller one, the committee had adopted -a '“mean position;’’ and he enivisaged no split among members.

; He emphasised that the ; initial fare and cargo increase would be reviewed at frequent intervals in the light’ of likely future rises in fuel prices. i “There is no reason to, 'think we will not have this! I rise,” he said. ' “I have never seen the in-; dustry in a more uniform {mood than over this issue.": i No announcement on the possibility of lowering air fares across the Tasman would be made for the next few weeks, said the president of LA.T.A. and chairman of! Air New Zealand (Sir Geof-| frey Roberts) today. Speaking at the close of I the LA.T.A. conference Sir Geoffrey Roberts admitted I

than an announcement was to have been made soon after the conference ended. i “But,” he said, “the fuel (crisis will have to be taken into account before any announcement is made.”