‘Enough seats now’ on Pacific route

Press, 22 February 1978, Page 12

‘Enough seats now’ on Pacific route

[NZPA Canberra American and Australian ! aviation authorities had to i get some rationalisation into .the total carrying capacity lon the Pacific route, said the j Australian Minister for I Transport (Mr Peter Nixon). \ There were now enough .seats on the route with Pan i American World Airways i and Qantas flying. Continental, another American airline, 'would just “cream off” their i share of whatever traffic was i available if it began flying i into Australia. I The Minister made hisi , comments while talks were! i under way in Canberra ■ \ between a powerful j American delegation and I Australian Department of: i Transport officers on the apjproval by the American Govi eminent for Continental to

. become the third carrier on the Pacific route. The talks are expected to i last most of the week, i “We cannot get cheaper ■ air fares when there are more i and more empty seats,” Mr • Nixon said in an interview. “That is the problem and i that is what, the negotiations i are about.” i However, Mr Nixon's com- • ments appear to be at odds , with remarks reported on • Sunday by the leader of the s American team, Mr Robert' ; Brown, the chief of aviation i jin the Department of State. ,i Mr Brown said the date for >i Continental to begin services iI should be decided this week. I "No doubt there will be II more flights going between fithe United States and Aus•|tralia when Continental be■lgins its service,” he was >1 quoted as saying.

“There is no way Pan American will be cutting back the number of flights it provides: we just would not accept that. “I don't know what your government has in mind, but we hope it will not try to restrict us.”

Mr Brown said also the talks would be concentrated on getting the Australian Government to reduce air fares to the United States.

The bilateral air agreement between' the United States and Australia provided for a second American carrier. But what Australia had a right to do was to argue about total capacity. The Minister also defended the government’s decision to reject an application by Pan American for a cheap return fare to the United States.