Qantas ‘net’ fares hit Air N.Z.

Press, 14 December 1985, Page 8

Qantas ‘net’ fares hit Air N.Z.

By

LES BLOXHAM,

travel editor

Air New Zealand lost travellers to Qantas yesterday soon after “The Press” revealed details of the Australian airline’s new range of ultra-cheap fares. Qantas this week released to travel agents “net” fares representing savings of more than $6OO on the existing cheapest official fares. While travellers were reported to be pleased with the news, some agents were angry that “The Press” had published their wholesale rates.

Mr Barry Pike, managing director of Pike International and Domestic Travel, Ltd, said he believed that “net” fares should remain confidential to travel agents. The public were not told the mark-up applied by

other businesses, so why should they know the rate of commission charged by travel agents, he asked.

Mr Pike said two of his clients who had been booked on Air New Zealand to London instructed him yesterday to rebook them on Qantas so that they could take advantage of the cheaper fares. One agent in Christchurch is retailing Qantas’s $l7OO round-trip “net” fare between Christchurch-London for $1790 — about $660 below Air New Zealand’s cheapest rate. Another agent, who wished to remain anonymous, said he had been forced by “The Press” article to lower his commission rates to satisfy irate clients.

Air New Zealand yesterday still refused to say if, or

how, it will respond to the Qantas initiative. “We are making no comment at this stage,” said an airline spokesman. According to informed sources, moves have been made by one interested party to determine the legality of the Qantas action. Those sources, say, however, that Qantas and its agents are acting within the law and in line with the Government’s liberalised policy on international aviation.

Two Hong Kong “net” fares were incorrectly quoted in “The Press” report yesterday. Qantas’s wholesale rate to agents for flights between New Zealand and Hong Kong (via Australia) is $l4OO return. The fare to Hong Kong and Peking (also via Australia) is $1645 return.