Turn in battle for air rights

Press, 24 August 1977, Page 7

Turn in battle for air rights

By

LES BLOXHAM,

travel editor

The battle for air rights over the South Pacific took a new turn last week when Pan American World Airways bluntly told the United States Civil Aeronautics Board that it would not acquiesce in a forced containment or cut to make room for Continental Airlines. The C.A.8.. in a 3-2 decision last April, approved an application by Continental for the right to extend its Pacific service beyond Hawaii to Fiji, Australia, and New Zealand. President Carter brushed aside objections from Pan Am, and the Australian and New Zealand Governments, and ratified the board’s decision. Now Pan Am has appealed to the board either to reverse its decision, or force Continental to serve American Samoa on all its proposed flights to Australia and New Zealand. (Pan Am at present flies through Pago Pago, but would prefer to withdraw, except for once a week, and concentrate on its popular long-range, non-stop services across the Pacific). When the C.A.B. began its investigations into South Pacific air routes, it expressed concern that American Samoa was being inade-

quately serviced. Pan Am claims that the board’s decision has done nothing to assure an improved service for the island. The airline believes that without a clear directive from the board, Continental will be tempted to over-fly Samoa in an effort to compete for longer-haul traffic. Pan Am has had competition from other United States carriers in the past on its South Pacific routes. American Airlines flew as far south as New Zealand but, in 1974, withdrew as part of a major “route swap” with Pan Am. American Airlines suffered big losses on its South Pacific operation. Pan Am has told the C.A.B. that “it is certain history will repeat itself.” “After a time, one will be forced to the sideline or both will be poor competitors against strong foreign (Qantas and Air New Zealand) airlines,” Pan Am has told the board. The airline noted that when it competed with American in the market, the two United States carriers together did not have 50 per cent of the market. Pan Am has since realised that figure alone.