Kiwis now seeking glamour and glitter

Press, 6 May 1980, Page 19

Kiwis now seeking glamour and glitter

By

LES BLOXHAM,

travel editor

New Zealand travel preferences were becoming more sophisticated and there was now a distinct trend by travellers to seek more glamorous destinations than historically had been the case, according to the deputy chief executive of Air New Zealand (Mr J. B. Wisdom).

In an address to the annual conference of the South Island Promotion Association at Westport on Saturday, Mr Wisdom said there had ’ been a noticeable move away from the close destinations of the quiet', scenic type to the glitter of places like Singapore, Hong Kong, Honolulu and Los Angeles. “There must be a lesson for us in such a trend, not only to attract people here, but by the provision of sophisticated facilities and attractions in this country to induce a reasonable proportion of New Zealanders to stay at home,” he said. However, New Zealanders who are saving for a taste of that exotic international glitter will find few crumbs .of comfort in Mr Wisdom’s address'. He made it clear that the airline was not prepared to commit “commercial suicide” by running at a loss. ? “The international air transport system cannot support for any length of time, fares and rates below cost as some of the great airlines of the world have already discovered,” he said. “We must also accept that it is a geographical fact that we are a fairly long way

from our markets and that the distance involved must be paid for.” Mr Wisdom said that at present it cost the airline about $200,000 to makv a return flight between Auckland and Los Angeles. Every one of 12 frequencies a week committed the company to about $10.5M a year.

“We must achieve a load factor of 68 per cent to break even at present yields,” he said. .Mr ’ Wisdom gave little hope of direct long-haul flights across the Pacific from Christchurch. The airline believed that the load factor would be reduced to such, a degree that it would have to accept.'a financial penalty of SSM. Cornmenting on the American policy of deregulation, Mr Wisdom said that while some aspects of the philosophy appealed-to Air New Zealand, “others carry an immediate threat to our very survival if taken to extremes.”

“In the general run of things, some airlines will acclimatise with varying degrees of ease, and others will find the environment such a hostile threat to their survival that they will call for subsidies which few nations can afford. Many will resort to mergers to protect their competitiveness or outright existence; even more will find mergers an inaccessible alternative. This is especially true of the small airlines that constitute the sole national carriers of third world countries,” he said.