Airport control
Sir,—The Government says competition will reduce fares in New Zealand. Ansett and Air New Zealand do not seem to think so and it is hard to see how putting several more big airliners on will help unless there is a very big jump in business. It would take a big drop in fares to increase the total travelling and it is easy to end up with more passengers but less money. A fare cut at 20 per cent would need to stir up an extra 25 per cent of travellers just to make the same amount of money, without even getting a surplus to pay for the extra planes and staff and airport equipment. It all
looks very dubious. The Government’s credibility will be hurt if fares do not go down. It would be wise to defer its plan to take over our airport and extract extra money from users until we see if the fare predictions come true.—Yours, etc., QUENTIN WATSON. September 13, 1986.
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Press, 16 September 1986, Page 10
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167Airport control Press, 16 September 1986, Page 10
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