Tasman fears on agenda

Press, 17 January 1979, Page 10

Tasman fears on agenda

INZPA Canberra I Australian and New ZeaI land Government officials will j hold talks in Wellington in February to discuss a wide range of aviation issues, inj eluding a rejection by Ausi traha for Air New Zealand to charge low fares between Sydney and the west coast j of the United States. ! Government officials said ■ that the main topic of the talks would be Tasman flights and a possible lowerling of the fares between the I two countries. Qantas and Air New Zea-

land at present share revenue from the flights run by the two airlines. However, informed sources said New Zealand was considering breaking this sharing agreement to compete directly with Qantas on the Tasman route if Air New Zealand was not allowed to charge low fares from Australia to the United States. The Australian Federal Transport Minister (Mr Peter Nixon) recently announced a new range of fares to the United States from as low as sAust43o return.'

Air New Zealand had its initial application to charge the new fares from Australia rejected. Air New Zealand is believed to be concerned that if Australia does not allow the airline to fly passengers from Australia to the United States, group tour firms will advise tourists to use Qantas because of the low fares. Informed sources said this would seriously affect Air New Zealand’s revenue earned on Pacific flights.

Mr Nixon will not attend the Wellington talks.