N.Z. air pact may end

Press, 3 May 1977, Page 13

N.Z. air pact may end

NZPA staff correspondent London Air New Zealand’s profitable interchange agreement with British Airways may not be renewed when the present arrangements come up for renegotiation in 1979. Under the 18-month-old agreement, British Airways charters Air New Zealand D.C. 10s from Los Angeles to London and return. allowing passengers between London and Auckland to stay on the one aircraft. The scheme — which British Airways said last xear that it hoped to extend to other routes, with other airlines — has been worth-while for both the British and New Zealand national carriers. Now the Air New Zealand chairman (Mr Cyril Keppel), in London for the first time since his promotion from chief executive, has said that British Airways might have outgrown the operation by 1979.

“They may want to establish their own Los Angeles-London route, he said. Whether we extend the agreement beyond 1979 would depend on British Airways’ plans.” There had been a tremendous growth in London-Los Angeles traffic, said Mr Keppel.

There had been no preliminary discussions on the future of the scheme

with British officials yet, he said, but he ruled out the early possibility of Air New Zealand flying direct to London.

By the time talks on the extension of the agreement were due, Air New Zealand’s fleet of D.C. 10s — there are seven in service now, and an eighth due in November — might be required on other routes.

“We’re working on plans for the full utilisation of our aircraft. It’s not as if we’re going to have an aeroplane and nothing to do with it if British Airways do not want to continue with the interchange.” By that time, Air New route to Tokyo, said Mr Keppel, the AucklandTokyo sector was hoped to be started by the end of the year, with the Japanese national carrier, J.A.L., flying a reciprocal service into Auckland early next year. Formal government-to-government negotiations still had to be completed, he said, and it was not yet decided what route Air New Zealand would use to Tokyo.

It would probably be through either Singapore or Fiji, though, and the J.A.L. flights might be through Australia, but there would have to be negotiations with the Australian Government about Japan’s use of the profitable Sydney-New Zealand route.