Move to cut air fares will come under fire

Press, 26 November 1979, Page 9

Move to cut air fares will come under fire

I NZPA-Reuter Manila , United States moves to bring about open comj petition in international air .travel leading to lower fares will come under heavy fire at an international conference opening in Manila tomorrow. Many of the 105 airlines attending the four-day annual conference on the International Air Transport Association regard the United States proposals as an attempt to impose unequal and unfair competition. Most of the world’s airTines, especially those of; J developing countries, are worried by the United States Civil Aeronautics Board’s; aim to end the present system of mutually agreed fare structures and replace it!

with open price competition. The C.A.8., which has introduced the new competitive rules on United States domestic airlines, has warned foreign airlines they might be penalised over traffic routes to the United States if they did not follow similar policies. Many foreign airlines assert that such a move could disrupt the industry. The C.A.B. wants to force air-fare competition by applying United States antitrust laws designed to protect consumers and prevent cartels and monopolies. ; Some airlines are less concerned than others about the United States moves, but those of developing coun- ’ tries regard them as a threat to their expansion and survival.

British airlines, too, are worried. British Caledonian’s marketing director, Mr Duncan Haws, told a conference ; of British travel agents in Los Angeles last week that the United States approach to deregulating air fares was wrong. He said lower fares would result in travel agents’ handling more passengers but earning less commission, and the advent of “walk-on fares” would mean agents being by-passed altogether. The I.A.T.A. president, Mr Roman Cruz, chairman of Philippines Airlines, said recently that the United States aim of applying its deregulation policy to the world meant it would use its . power to impose its will on iother countries.