Queries over air ticket

Press, 18 December 1982, Page 1

Queries over air ticket

PA Wellington A Mount Cook Line airline ticket issued to an Australian senator has been added to a file of . international air tickets being investigated by the Ministry of Transport. Ministry investigations show that the round-the-world ticket saved Senator John Siddons several hundred dollars by being issued in Christchurch but paid for in Australia.

Inquiries by NZPA in Australia and in''New Zealand have revealed that the Mount Cook Line, which issued the ticket, has since ceased the practice of issuing tickets for sale overseas, “in view of the possibility that such transactions may be questioned.” The ticket was called “completely legitimate" by

the Melbourne travel agency which arranged it, and by the airline,

The ticket, a photocopy of which was given to NZPA, was for, travel from New Zealand to Australia, back to New Zealand, to the United States, Britain, Europe, Australia, and back to New Zealand.

The first and last flights on the ticket were from Christchurch to Melbourne and Melbourne to Christ-, church, respectively. Both were left “open.” The 13 other flights on the Air New Zealand ticket stock w r ere fully entered and confirmed. Allegations of ticketing irregularities involving the purchase of tickets in New Zealand for resale in Australia were made in the authoritative “Flight Inter-

national” magazine in July and were raised in the Australian Senate in Canberra last month.

The practice is designed to take advantage of the about 30 per cent differential between the Australian and New Zealand dollars. The travel agency orders the ticket from New Zealand, takes half the exchange rate “discount” itself, and passes the rest on to the customer.

The Travel Agents’ Association has described the issuing of such tickets as common practice around the world.

Ministry of Transport sources have confirmed that they are investigating a "number” of similar tickets but said no decision had been made on whether the investigation of the Siddons ticket

would be taken further. A detailed check had shown a saving of $946 on the ticket. NZPA was told. Senator Siddons, a Democrat from Victoria who spoke at the Social Credit conference in Hamilton earlier this year, told NZPA’s Australian correspondent, Tom Bridgman, that he had no suspicion anything was wrong with the ticket, which had been arranged at the suggestion of a Melbourne travel agency.

“All I was interested in was getting to my various destinations on time,” he said. “I do not know the details. It was done by my secretary and she just bought the ticket. The agency suggested it would be cheaper to start the journey in Christchurch.” Mr Eddie Zimmerman, deputy managing director of the Stewart Moffat Travel Agency in Melbourne, told NZPA that the ticket was “completely legitimate” and was bought and paid for in New Zealand by the agency. Senator Siddons paid for the .ticket in Melbourne.

“As a travel agency we have a responsibility to clients to get tickets at the best possible cost,” Mr Zimmerman said.

Mr Ted Beckett, public affairs manager of the Mount Cook line which issued the ticket in Christchurch told NZPA ... “no illegal transaction has taken place.”

“However, in view of the possibility that such transactions may be questioned in the future, we decided last July not to handle any such future requests.” The Siddons ticket was issued by the airline on May 26.

“Flight International” questioned the practice “because when the airline whose ticketing the flight coupons are written on redeems them in New Zealand, it gets paid in New Zealand currency effectively at a rate substantially lower than the applicable fare level in Australian dollars.”

The Ministry’s investigation showed that the ticket was $690 cheaper than if it had been bought in Australia, with a further $265 saving through ticketing errors as to the rate, at which business class travel was charged. When he raised the issue in the Senate in November, a New South Wales Labour Senator. Mr Kerry Sibraa. alleged that the practice was widespread.