Labour’s stand on Air N.Z. attacked

Press, 31 October 1981, Page 3

Labour’s stand on Air N.Z. attacked

By

LES BLOXHAM

travel editor

The chairman of Air New Zealand, Mr C. W. Mace, is concerned that the Leader of the Opposition (Mr Rowling) is trying to gain political mileage from the airline’s difficulties.

Mr Mace said yesterday that Mr Rowling's recent statement that Labour would, if it became the government, make significant changes to the board and management was neither helpful to the airline nor enhanced Mr Rowling’s image.

The complex and serious problems faced by Air New Zealand were the same as those troubling many other

international airlines. The problems had been caused by uncontrollably high prices for . fuel and a demand for exceptionally low fares to remain internationally competitive.

Mr Mace emphasised that Air New Zealand had made realistic profits. “Contrary to Mr Rowling’s statements, the airline does have a very experienced, top-class board and management team who are all dedicated and working hard to bring the company back into profit as soon as possible,” he said. Referring specifically to criticism of the board’s expertise, Mr Mace said members included a former chief executive and chairman of the airline, the former chief executive of N.A.C., a prominent barrister and solicitor, two retired airline captains, and five leaders from New Zealand's com-

mercial field. (Mr Mace was formerly a chairman of N.A.C.) He said the airline had many plans for continuing the fight to cut costs. “Some have been actioned, others announced, and more are ready to be announced and actioned.

“In many instances urgent action is required and the board is not prepared to stand aside of the problems,” he said.

Retrenchment was only part of the airline’s policy. Emphasis should be placed on development, such as the proposed Auckland-Perth service, and the possibility of Air New Zealand's flying between Los Angeles and London.

“The comments of Mr Rowling and his colleagues are not helpful at a time like this,” said Mr Mace. “What we need now is the support of the whole country.”