Cheaper fares a possibility

Press, 4 October 1977, Page 41

Cheaper fares a possibility

By

LES BLOXHAM.

travel editor

Cut-rate charter flights which will slash more than §3OO off the existing lowest fare between Australia and Europe now seem almost a certainty. In a surprise stand on the controversial issue last week, the Australian Government’s Select Committee on Tourism came down strongly in favour of the charter service proposed by the British aviation tycoon, Mr Freddie Laker.

Mr Laker is expected to make a formal application to Australia’s Minister of Transport (Mr Nixon) early this l u° n » . a / ter he receives approval from the British Government. His proposed off-season return fare between Sydney and London — sAusts3o— represents a saving of more than $3OO on the lowest fare now available.

The select committee’s recommendation that the Government approve two charter flights a week for a trial period of two years was made despite strong objection by Qantas that the charters would leave insufficient passengers to justify the continuation of scheduled services.

“None of the views put to the committee on the disadvantages of charter flights of the type proposed by Mr Laker has been substantiated by experience,” the chairman (Mr Robert Bonnett) reported to the Australian Parliament. The whole travel industry would benefit from cheaper air fares,'he said. These views, apparently, also have

the backing of the Minister—a spokesman for Mr Nixon said he would encourage any plan to lower the fares. The Laker charters could have some interesting repercussions in New Zealand, and the thought of an exodus of travellers skipping the Tasman to pick up cheap flights in Sydney must be of some concern to Air New Zealand. The cheapest return fare between New Zealand and Europe now is $lllB, plus $lll travel tax. But by crossing

the Tasman on a return epic fare, New Zealanders could save more than $3OO. On current exchange rates, the Laker fare would cost about SNZ632 which, if bought in Australia, would not be subject to the New Zealand travel tax. Only the Tasman fare would be taxable —a saving of about $BB in tax. It seems likely, therefore, that Aii New Zealand might have to match tin Laker rate with a New Zealand to Lorn don return fare of about $BBO. Mr Laker’s charters over the Atlantic have this year forced a reduction in fares —• which were already cheap compared with those for South Pacific flights — between the United States and Europe,