N.A.C. seeks another rise

Press, 31 May 1977, Page 11

N.A.C. seeks another rise

PA Wellington | Substantial increases in i operating costs have caused I the National Airways Corporation to lodge an applies-1 tion for increases in passen-; ger fare and freight rates, the airlines said. At an earlier fare application hearing in December, N.A.C. advised the Air Services Licensing Authority that it would have to seek another tariff adjustment in 1977 because of rising costs. The authority will hear the new application on June Some adjustments in fares from Blenheim to points south of Christchurch arej being sought and application! is also being made to put' passenger fares and freight rates on a more equitable distance-related scale. The effect of the adjustments to passenger fares will result in a maximum increase or decrease of $4, N.A.C. said. In its latest application, N.A.C. seeks an increase of 12.5 per cent in passenger

i fares (rounded off to the nearest whole dollar) and i for basic freight rates. 1 Commenting on the need - for the increase, N.A.C.’s ■ chief executive and general - manager (Mr D. A. Paterson) ! said: “The airline has gone well beyond its capacity to - absorb extra costs. , “Our wage bill alone has • risen by almost SSM. Fuel ' costs have already risen by : SI.3M, and the last devaluai tion of the New Zealand . dollar continues to affect the • cost of servicing loans and t the purchases of spares.” Mr Paterson said that the ; airline was also likely to be : faced with additional wage ! and salary adjustments later i in the year. The cost of such increases . coupled with a further rise : in fuel prices is expected tc cost N.A.C. an additional • S2M in a full year. ij The increases being (sought in the applicatior , will result in a net return or (gross revenue of about $B.6 r , million after allowing for air ' port and airways dues, com •(missions and discounts.