Airlines seek ways to economise

Press, 21 August 1979, Page 23

Airlines seek ways to economise

From

KEN COATES

in London First-class international air travel may be eliminated from British Airways flights, a move which could eventually lead to Air New Zealand considering a similar change. Big changes in passenger services are planned by British Airways as it re-.equips to cope with an expected huge increase in air travel. The airline could also cut down on meals and seat space. These possible changes would be forced on international airlines as the pressure for cheap fares mounts. They are already present on the North Atlantic, and consumer action for a big reduction on rates charged for travel within Europe is mounting. The chief executive for British Airways, Mr Roy

Watts, estimates that by 1986, the year by which older aircraft such as the Trident will have to be withdrawn to comply with international noise regulations, four passengers out of five will be travelling for pleasure. He says the number of passengers will almost have doubled to 30 million a year. Fears among businessmen who travel are that their fares will rise — partly to offset the smaller yield from the lower fares, and because they are a captive market which has to travel. Airlines, however, argue that it costs more to fly the full-fare paying passenger because he is able to change his flights without notice. Research indicates that to allow for this flexibility, almost two seats have to be provided for each eventual traveller.