Warning of big loss on Hobart link
NZPA Sydney T.A.A. and Ansett could face a combined loss of about sAust. 1 million a year on the route between Hobart and Christchurch. According to Australian Federal Department of Transport sources, the loss is based on the airlines flying alternate weekly Boeing 727200 services between the two cities.
The information is contained in a confidential report prepared by Qantas and given to the department. Last Wednesday the Transport Minister (Mr Ralph Hunt) announced that T.A.A. and Ansett had been given authority to fly their Boeing 727-200 aircraft on the route on alternate weeks. T.A.A. indicated on Sunday that it hoped to hold the fares about the same level as those on traditional routes, if not lower because of the shorter distance between Hobart and Christchurch. The New Zealand Government indicated on Sunday it was interested in seeking extra routes into Australia from New Zealand to compensate for the increase in traffic originating in Australia.
However, the New Zealand Government is not interested at this stage in Air New Zea-
land flights to Hobart. Its main targets in negotiations for exchange of air routes would be airports such as Perth, Adelaide and Townsville.
A feasibility study of the Hobart-Christchurch route by Air New Zealand concluded that the route lacks potential and would provide the airline with a low yield.
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Press, 15 July 1980, Page 3
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226Warning of big loss on Hobart link Press, 15 July 1980, Page 3
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