Air merger decided?

Press, 12 November 1977, Page 1

Air merger decided?

By

CEDRIC MENTIPLAY

The amalgamation of National Airways Corporation and Air New Zealand is now regarded as a matter of “when” rather than “if.” Though the committee is still deliberating on the feasibility of the amalgamation, a wide body of opinion in the Aviation Industry Association believes that the main decision has already been taken, and

that all that remains are the “nuts and bolts” of how it will be done. A senior aviation source has asserted that the decision was made originally by “that cost-accountant’’ the Prime Minister (Mr

Muldoon), and that it could be justified by the lack of duplication which such a move would entail. Asked directly whether he would oppose the move this source said: “Definitely not. I think we need more

efficiency in these hard times.” The steering committee comprises the chief executives of both airlines, the Secretary and Deputy Secretary of Transport and the Director of Civil Aviation. These men decline to discuss the subject, and will not even disclose the terms of reference of the discussion.

Other sources disclose, however, that subcommittees have been examining all phases of the working of both airlines. The main committee will meet again in about 10 days. It is said that the Minister of Transport (Mr McLachlan) has asked for the report before Christmas. Another source believes that it will be deait with before Parliament rises—but this seems unlikely. This is the third time the amalgamation of the two airlines has been investigated. Both airlines have demonstrated a high standard of efficiency, and morale is such that neither wants the amalgamation.