Continental plans to run Tasman flights

Press, 21 May 1979, Page 3

Continental plans to run Tasman flights

NZPA Los Angeles Continental Airlines plans to take up its right to run trans-Tasman flights next year. The senior vice-president of international and Government affairs for Continental (Mr H. J. Weider) said that at this stage he was unable to say what ths frequency of flights would be, but it seemed likely that the Tasman legs would be associated with the airline’s Los Angeles-Sydney run. Mr Wexler predicted a •‘major confrontation” over South Pacific routes between the United States and New Zealand if the New Zealand Government’s review of airline policy did not support the country-of-origin scheme. Continental Airlines started services from Los Angeles to Sydney and Auck. land at the beginning of this

month and, while the Australian route has been successful, Mr Wexler blames negotiating difficulties over the country-of-origin plan for poor loadings into and out of New Zealand. The Australian Government agreed with the United States to introduce the country-of-origin plan, whereby each airline is allowed to charge its own fares out of its territory. Mr Wexler said Continental’s early problems in New Zealand had not been helped by Air New Zealand’s refusal to allow New Zealand travel agents to ticket on Continental flights in April, the month before Continental started its service. Air New Zealand had invoked its I.A.T.A. privilege of not ticketing on airlines before they became operational. Mr Wexler said Continen-

tal had also faced an objection to such non-I.A.T.A. : privileges as supplying pas- • sengers with free drinks and • stereo headsets. Continental had overcome this difficulty, however, by ■ not serving drinks or issuing I headsets until ’ its flights : were clear of New Zealand’s , territorial waters. Mr Wexler said he found 1 it difficult to understand Air New Zealand’s objections, as . he believed any reasonably ’ efficient airline should easily ! make a profit on United ! States-South Pacific routes I on present fares. He said that Continental > would still like to reduce subI stantially its fare structure to New Zealand, and he said . he hoped this could be done iif the country-of-origin i scheme was introduced as a ■ result of New Zealand’s airline policy review scheduled ■ for completion on July 1.