Air N.Z. studies fare cuts
PA Auckland Air New Zealand has been making a study of the lowcost stand-by type fare — now filling aircraft on Atlantic flights — for its Pacific routes. “We are certainly keen on the idea in principle,” said a spokesman yesterday, “but we still need to do some more homework, largely to see if the system would achieve its objects.” The study is a reaction to Pan American Airlines’ applying to the New Zealand land Government on Thursday for fare cuts — essentially for a new stand-by fare. The new Pan Am fares would be 14 per cent to 58 per cent lower than present Pacific fares — possibly about $7OO return to California, or $5OO to Honolulu. The Pan Am application is likely to be approved, for this airline has a strong “lever.” At the same time Pan Am also filed application with the Australian Government for the same type of fare. Australia has made no secret of its approval for such fares.
Because of the public and political opposition that would be created by any refusual to acknowledge the new fares, it is difficult to imagine the New Zealand Government’s turning down the Pan Am application. It would inevitably be matched by the other airlines serving the United States: Air New Zealand and U.T.A. Under the stand-by fare, a passenger books 21 days ahead of the date he nominate • to travel. The airline sets the date of travel — usually within a week of the date nominated by the passenger. This depends on the availability of seats not already booked by normal fares. The application for the New Zealand fares sets the date of February 5. However, the Australian Government is not expected to give its approval until April. Air New Zealand is interested in finding out the demand — whether it would be confined to a fairly small group, whose time was free enough to allow them to wait, or whether it would attract a cross-section.
There may also be problems with United States regulations, which it may limit the proportion of standby passengers.
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Press, 12 November 1977, Page 3
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346Air N.Z. studies fare cuts Press, 12 November 1977, Page 3
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