Bucket-shop airline sales being countered

Press, 9 October 1982, Page 27

Bucket-shop airline sales being countered

By

DIANA DEKKER

in London

An inter-industry attempt to counter the bucket-shop airline ticket sales movement in London has been examined with interest by New Zealand’s Minister of Transport. Mr Gair. Mr Gair. in London to sign the United Kingdom-New Zealand air services agreement. has met a highpowered inter-airline group of officials. ' The airline industry has been trying to get its own act together and avoid the corroding problem of bucketshop air discounting. " he said after the meeting. "It is a problem that is.

frankly, worldwide — except behind the Iron Curtain. The restraints I.A.T.A. was once able to provide seem to break down in the particular area of rates maintenance. "The result has been catastrophic in some areas, but there is a very interesting attempt in London for the industry to discipline itself in terms of maintaining an openness about rate setting, and not going behind each pther’s backs with illegal or hidden dishonesty." He said that at least two airlines out of London had already "disciplined" therflselves in this way and there was a good prospect of others doing so. "The more responsible air-

lines see this as a possible way of correcting the worst of the abuses and hopefully bringing some sort of orderliness to the rates-setting business.

"It won’t be the first industry that has had to introduce an element of self-discip-line.” Mr Gair said.

"If the bucket-shop syndrome proceeds to its ultimate there will be a lot of bankrupt airlines and fewer operations. "You can't sell a product for less than the cost of the service for long without something happening.

"The chance of reducing standard fares are impaired while the bucket-shops prosper." Mr Gair said.