Airline seeks fare rises, discounting

Press, 20 February 1980, Page 3

Airline seeks fare rises, discounting

Mount Cook Airlines will seek fare increases of up to 20 per cent and an extension of fare discounting. The application, the airline’s third in the last 12 months, comes after Air New Zealand’s claim for a 16 per cent rise in domestic fares. It will be heard by the Air Services Licensing Authority on March 6. The smallest increase sought is 16 per cent, on Mount Cook’s ChristchurchR o t o r u a-Auckland route. This would make that fare $92, in line with the fare Air New Zealand wants between Christchurch and Auckland. The biggest fare increases would fall on Mount Cook’s charter services, said Mr P. S. Phillips, chief executive of the Mount Cook Group, Ltd.

To “soften the blow” on 1 the New Zealand public, 1 Mount Cook was also seeking permission to discount ■ promotional fares up to 50 per cent, he said. Discounts of this size were now permitted only on : student 1 stand-by fares. ■ Details of various discount : packages had not yet been settled, although one would be an “Advance Purchase , tTravel Plan.” Under this, passengers . could buy five trips between ; Christchurch and Auckland for the price of four, an ef--1 fective discount" of 20 per cent. 1 Mr Phillips said that’ the 1 fare vouchers would be valid for 12 months after purchase, giving protection , against inflation during that period.

Mount Cook’s “Air Bridge” scheme, introduced in October, 1978, would continue, he said. This discount on a return ticket between Christchurch and Auckland was 15 per cent during the summer tourist season and higher at other times. Jet fuel price increases will be Mount Cook’s main justification for higher fares. The company expects to file yet another application after fuel increases an anticipated 3c a litre early next month.

Such an increase would add $300,000 to the airline’s fuel bill, said Mr Phillips. Asked if mounting fuel costs might cause the airline to reduce services, he said: “As long as we can stay as efficient and as lean as possible, we will stay ahead of the game.”