New Air N.Z. service has been stalled

Press, 30 June 1982, Page 21

New Air N.Z. service has been stalled

From

KEN COATES,

in London

Air New Zealand's campaign to launch its new "Ritz of the Skies” service from London to Auckland has begun with a nosedive. Cheap fares in London “bucket shops." which have been selling like duty-free bargains for two weeks, have been abruptly withdrawn by the airline. The new service is due to take off from London on August 26. Cheap tickets, an undisclosed number of which have been snapped tip, have been sold at prices under-cutting any other London-New Zealand service available at this time of the year. A spokesman for Air NewZealand said that he was unable to give any information on fares for the new London service which would be announced on July 1. But three travel. agents have confirmed that Air New

Zealand had told them a deal for fares to promote the new service, announced two weeks ago, was now off. Anglo Pacific, which specialises in travel and freight to Australia and New Zealand, said that they had been selling a one-way fare, London to Auckland, for $925, return $1570. “But today Air New Zealand told us its Head Office had put a stop to these fares, but they • would honour reservations already made,” said a spokesman. . The manager of the Reho Travel Centre, Mr Sean Jones, said that Air New Zealand had told all agents to stop selling the fare. “It doesn't make much sense, but they said it was based on an immigrant fare which had been withdrawn by the New Zealand Government for political reasons.” Mr Jones added that he

did not think immigrants were now subsidised in travel to New Zealand; and that anyway a return fare had nothing to do with immigration. "Undertakings to passengers booked and confirmed will be honoured but Air New Zealand has given us a deadline of June 30 or July 5 at the latest to get all the money in and tickets issued," Mr Jones said. His firm, which, specialises in air fares to Australia and New Zealand, was selling tickets at $960 one way and ■sl7lo return. “We only put the fares on the market a couple of weeks ago and those were

bought like a shot," he added. "We could have sold thousands. People realised what a good fare it was, particularly for travel out in October, November, and December. “It was the cheapest' fare on the market to New Zealand, except for British Airways super apex low season out" and low season back at 51682 which is difficult to beat. To take advantage of this, flights have to be made between December 23 and January 15 and April 1 and July 15. Asked whether he was disappointed. Mr Jones said that if people did not buy the

Air New Zealand tickets, “they will buy the next best and we have a good selection.” His firm had organised .promotion literature for the Air New Zealand fares and had the fares in its manuals, ready for promotion. “We are members of the Association of British Travel .Agents, and most of the competition in low fares to Australasia is from unlicensed agents.” One agent said that the Air New Zealand cheap one-way fare, London to Auckland, undercut the Singapore Airlines fare by $94. There was an air of puzzlement among agents and “bucket shop” operators as

to why Air New Zealand had suddenly decided to .duijp its low promotion fares. ! One agent said he btiieved a complaint had been-made to the British High Commission in Wellington jit the selling of tickets betyw the level agreed to by! International Air Transport Association and fatilfied by governments. / The selling of cut-price tickets has been widespread in London. The terra “bucket shops” (an old term/ from the Stock Exchange) supplies to unlicensed travel Agents, of whom there are between 150 and 200. I

According to [ the proprietor of one, the system works this way:' an airline wishing to dispose of seats on poorly patronise jl flights arranges a cut-prifce deal with agents or operators who are called consolidators. They usually/ make from

$23 to $35 a ticket, either selling it themselves to the public, or to other operators who in turn can make up to $7O a ticket. The operator estimated that a return Air New Zealand ticket retailing at $1570 could have been sold by Air New Zealand for $1546.

Les Bloxham, “The Press” aviation reporter says: Air New Zealand in Auckland disclaimed any knowledge of fares being sold at lower than normal levels in London. A spokesman for the airline was surprised when told that “bucket shops” had been directed to stop selling the cheap fares.

“We must adhere to the official tariffs,” the spokesman said. ■ It is no secret that Air New Zealand is undercutting other airlines in the current price war in Australia.