Will we ever fly to Sydney for $85?

Press, 6 July 1978, Page 1

Will we ever fly to Sydney for $85?

By

LES BLOXHAM,

travel editor

New Zealanders are unlikely to benefit in the foreseeable future, if indeed at all, from the decision of the International Air Transport Association to scrap its antiquated machinery for determining the cost of air fares. For although, as “The Press” has summarised, “the way has been cleared for cheap flying,” there is little possibility of airlines here wanting to fly that way. Air New Zealand, in fact appears already set on an opposite course by preparing an application to have domestic fares increased The actual amount being sougnt has vet to be released bur if travel industry predictions prove correct the ncrease will

be in the vir.njty of 7 per cent and effective from early October Sucn timing would be acutely embarrassing for the Government which, barely six months ago. supported the Air New Zea' an d-NA.C. merger with the argument that it would mean a saving of SIOM a year. There is 'ittle doubt that the Government would prefer to be well clear of the election before any increase >s approved. And governments, after all, have the final say as far as air fares are concerned Consider for example, the rec-nt taKe off run before the cheap budget fares .cross the Pacific got oft the ground. Pan American Airways.

supported by the United States Government, made the first move by announcing their intention to introduce the fares. The New Zealand Government refused approval and directed that the whole ssue should be considered irst by the I A.T.A. The association gave th scheme : ts blessing; ultirr .tely, the New Zealan lovernment did so too. But across the Tasmai the Australian Govern ment has remained stead fastly opposed to budge! fares and has even forbidden travel agencies and airlines to advertise that they are available out of New Zealand. Canberra no more wants Australians skipping across the Tasman to take advantage of the low fares

to the detriment of Qantas, than the New Zealand Government wants New Zealanders heading to Sydney to pick up cheap excursion flights to >ther destinations. What it all boils down o is this: if governments it either end of an airine’s route fail to agree m fare adjustments, then hey will not be inroduced until agreement > reached. Air New Zealand, for nstance, received a rebuff rom the Fijian Government earlier this year when it refused to approve a 5 per cent increase in fares between Auckland and Nandi. The Government viewed the proposal as a threat to its tourist industry which has become exceptionally

vulnerable since the introduction of the budget fares to Honolulu last February. Although basic firstclass and economy fares on international routes are expected to rise later this year, there is still scope for Air New Zealand to give serious consideration to cheap budget-type “top-up” fares on some of 'ts routes. Even the present ad-vance-purchase trans-Tas-man fare, at 4.69 c a kilometre, is 50 per cent higher than similar fares elsewhere in the world. If based on a comparative reduction to the budget fares now available to the United States, a budget ticket between Christchurch and Sydney would sell for about $l7O return

— about S7O below the present cheapest tare. A similar rate and saving would be possible on the Auckland-Nandi route; a move that certainly would be welcomed by the Fijian Government. However, the introduction of such fares would only compcrund the problems that are already piling up around Air New Zealand. If New Zealanders could fly to Sydney and back for only $l7O, would the airline really be able to continue demanding $144 for a return ticket between Christchurch and Northland? And wouldn’t such a cheap trans-Tasman fare increase the incentive for thrifty New Zealanders to

pick up west-bound excursion flights in Sydney? Air New Zealand is al’ ready worried enough by the increasing number of people who are combining budget and charter fares to get to the United Kingdom on the cheap by way of the United States. There seems little likelihood, therefore, erf Air New Zealand seeking the introduction of cheaper fares across the Tasman To Fiji, maybe; but only after the existing wrangle over bilateral rights is sorted out by both Governments. But by then it might be too late. Already the tide is turning and even the cheapest fares erverseas are now being threatened by increases. Only last week, Trans World Air-

lines applied to increase its trans-Atlantic budget fares from $256 to $289.

It is not yet known whether other airlines involved in the trans-Atlan-tic price-cutting war, which involves a vast variety of discount rates, will ollow suit. For 1.A.T.A., the timing s ironical. The decay Of ts once powerful teeth began with Freddie Laker and continued unabated as one member airline after another fought to compete. Last week’s meeting in Montreal can best be des* cribed as urgent surgery to remove a mouthful of useless stumps. To say it will pave the way for wide-spread fare cut’s however is raising false hopes.