Danger seen in having one airline

Press, 24 July 1987, Page 1

Danger seen in having one airline

By

LES BLOXHAM,

travel editor

Government thinking behind the decision to expose Air New Zealand to foreign-backed domestic competition was revealed by the Minister of Civil Aviation, Mr Prebble, in Wellington yesterday. Speaking at the opening of Ansett New Zealand’s new passenger terminal at Wellington Airport, Mr Prebble said the monopoly on the main trunk jet routes was dangerous, expensive, and not in the public interest

“It was dangerous because New Zealand is heavily dependent on air transport” he said. “The short strike by cabin crew (late December, 1684) cost the country tens of millions of dollars.

“Passengers, tourists, businessmen and air freight were stranded up and down the country and the Government discovered there was no alternative way of transporting those people short of passing very extreme laws which, as a Government of the rule of law, we would (have been) reluctant to do.”

Mr Prebble said Government thinking was also influenced by the cost of the monopoly.

“In all monopolies there is an element of monopoly pricing, even when the business is Gov-ernment-owned,” he said. The Government had eased the restriction on foreign investment because it believed that aviation was no different from trucking, shipping, banking, or insurance. Ansett’s case for joining the Newmans-Brier-ley consortium was compelling, he said. . : .•■ ' v'W: -'

Ansett believed jt ceuld at-, sawswa Mr Prebble emphasised, however, that its shareholding would be restricted to 56 per cent until New Zealand airlines were able to fly in Australia. “The Government remains convinced that just as it is in the best Interests of New Zealand to allow an Australian airline to fly here, it would be in the best interests of Australia to allow New Zealand airlines to fly there,” he said. The old domestic terminal, which he described as a “converted Tiger Moth factory,” would have “shamed a Thirdworld country.” (The building has been recently refurbished.) Ansett’s terminal adjoins the northern end of the international building. It has a spacious, carpeted check-in: area with a departure lounge and Golden Wing Club facilities on the upper level. The airline will begin its commercial services tomorrow.