Cut-rate air fares for all?

Press, 14 March 1984, Page 4

Cut-rate air fares for all?

By

LES BLOXHAM,

travel editor

Cut-rate air fares now obtainable only by “people in the know” could become available to everyone as a result of the Government’s revised strategy on international fares. The Minister of Civil Aviation, Mr Gair, conceded yesterday that the Government had got itself “bogged down” in its latest attempt to control fares by legislation, which required the publication of at least 600 Gazette notices covering the sale of “officially approved” fares. Travel agents have been waiting nine months for the notices, but to date only three have appeared. “The Press” made known the tangle in a front-page report on February 11 and, in an editorial the same day, called on the Government to “withdraw as speedily and graciously as possible” from its predicament. Having repeatedly threatened the unofficial discounters with a big stick, but to no avail, the Government now offers a carrot to lure them into the open. The revised policy will require the airlines to seek the Minister’s approval for the sale of cut-rate fares. Mr Gair indicated that he would look favourably on the applications. “If someone wants to produce a special concession fare and can sustain it and offer it generally, fine,” said Mr Gair. He said his attitude was that if an airline made a request he would do his best to accede to it. However, he does not expect to be dealing with applications for “dramatically different” fares. “Instead of airlines offering low fares to a few selected agents for sale to a few special clients, they

would have to be available to everyone,” he said. In his opinion airlines would be less willing to offer discounted fares if they had to make them generally available. What happens, though, if the airlines reject the Government’s bait and continue to keep their “under-the-counter” fares out of sight? Will the Ministry have the necessary legislative power to force the airlines into line? “No-one can guarantee it, of course, but I think that by concerning ourselves only with the essentials, we have a much better chance of making the simplified system workable and enforceable,” Mr Gair said. Mr Gair emphasised that the Government was determined to retain a regulated market-place. The shift in policy should not be interpreted as “deregulation.” Mr Gair said that Air New Zealand had accepted the "reality of the situation.” The airline recognised that a manageable regime concerned only with essentials was “better than an unworkable, unenforceable regime trying to do the theoretically correct thing.” Air New Zealand’s applications for fare approvals would be treated on the same basis as every other airline’s, he said. South Islanders in particular could benefit through the new policy, particularly if Qantas applies for (and gains) approval to carry passengers to and from Christchurch on concessional fares to its destinations beyond Australia. At present such concessional fares are available only on Air New Zealand and other airlines flying from Auckland. Mr Gair aims to have his revised policy into effect by the end of the month.