Cheap Laker fare possibly closer

Press, 16 August 1980, Page 2

Cheap Laker fare possibly closer

NZPA London Laker Airways hoped to have low-fare services to Australia by April next year, Sir Freddie Laker told a London press conference yesterday.

It is believed it is planned later to extend the service to New Zealand. The main reason for the press conference was to announce further cuts in Skytrain service fares to New York, Los Angeles, and Miami. Sir Freddie also said that a hearing into his application to provide charter and scheduled services to Australia would be held in November.

“This isn’t a bad date, be? cause it coincides with a review of Australia’s charter policy by the Australian Transport Mnister,” he said. “We think that politically our Government at least is interested in more competition, and it is quite happy if there is .more competition on international routes. Australia is a prime route for this to happen.’

Sir Freddie said it had now been- demonstrated that where his airline had created a lot of competition “an awful lot of people travel;”/ The airline has asked the Civil Aviation Authority for rights to fly between Britain and points in the Middle East and South-East Asia ' to ’ Australia, with Perth, Melbourne, and Sydney as its intended destinations. New Zealand is I a possibility later.

But New Zealand travel industry leaders said yesterday that a cut-price Laker fare between Britain and Australia was wishful think-

ing and might offer little or; no financial advantage to New Zealand travellers.

“Another kite-flying operation by Laker,” was the comment of the Deputy Secretary of Transport (Mr A. J. Healy). Permission for such flights would have to be sought from the Governments concerned and no such arrangement had been considered by the New Zealand Government, he said. The director of the Travel Agents’ Association (Mr P. Cox) said that such a service either to Australia or New Zealand was most unlikely. Australia was unlikely to permit Sir Freddie to run flights that undercut the advance payment and excursion fares to Britain and Europe. If Laker Airways, through some special new development, got a cut-rate fare it would have to be passed on to airlines such aS Qantas and British Airways, Mr Cox said. Travel agents said that a reduction of about $3OO was necessary in the AustraliaBritain fare to make it marginally cheaper for New Zealanders to blend a Tasman low-season excursion fare with one from Sydney to London.

Laker Airways recently was awarded rights for a Skytrain service to Miami, and also on appeal was given rights to Hong Kong after the Civil Aviation Authority had rejected its application. Sir Freddie yesterday de-, clined to give details of the proposed cheap fares to Australia, but they are expected to follow the customary pattern of undercutting the! cheapest rates available on

[rival services—in this case Qantas and British Airways. Announcing the new American fares, Sir Freddie said that from October 15 Sky train’s unrestricted “supersaver” economy fare to New York would be about $lB5 each way. Los Angeles would be about $270 each way, and Miami about $2OO each way. Children under the age of 12 would travel at half price, and infants under the age of two at 10 per cent. This compares with the lowest economy each way fare charged by British Airways and Pan American of about $375 to New York, about $555 to Los Angeles, and about $420 to Miami. . “Passengers can book when they like, stay as long as they like, one-way or round trip, and still have reserved seats with full in-flight service including movies, stereo, drinks and duty-free goods,” Sir Freddie said.

He described stand-by fares as “come-on” or “promotional” fares, which were often not available. Sir Freddie said he saw his latest fares package as one way of helping Britain out of its present recession and, by reducing costs, assisting in reducing unemployment. On Wednesday, Skytrain had carried its one millionth passenger—“an unbelievable number in only 34 months." “Laker is now operating 42 round-trip transatlantic flights a week on Skytrain services alone,” Sir Freddie said. “This year, Laker has already carried more passengers across the Atlantic than it carried in the whole I Of 1979.”