New airline charges canase of concern

Press, 10 February 1988, Page 9

New airline charges canase of concern

By

DAVID CLARKSON

New charges announced by the Airways Corporation would make private flying the preserve of the wealthy, said the manager of the 1000-member Canterbury Aero Club, Mr Bruce Fulton.

Air New Zealand is still assessing the effects of the new figures, but the charges are expected to increase the costs for small airlines. They would also make the airways charges at Christchurch Airport more expensive for airlines than the charges at Wellington and Auckland, said the Christchurch Airport director, Mr Hugh McCarroll. The large number of international flights would keep the over-all charges down at Auckland, and the frequent domestic flights would have the same effect at Wellington. The airlines will hold a meeting with the Airways Corporation in Auckland on Monday, and an Air New Zealand spokesman made it clear the airline still regarded the figures as "open for discussion.” Mr Fulton is still wondering whether he should take the new schedule of charges seriously, after it was delivered to him by

hand at the club by an Airways official on Monday afternoon. New Zealand’s aviation industry has already blocked one proposal for new charges with a threat of an industry-wide boycott, and Mr Fulton believes there will be further opposition this time. He is concerned that the corporation has called a meeting for non-com-mercial operators to discuss the increased charges in Auckland on Friday. “They call a meeting in Auckland, less than four days after we were given the notice, and they want us to make constructive comment,” he said. “I can’t believe this is a serious document.” Since then, the corporation has responded to the mounting pressure and has called a meeting in Christchurch on Saturday at 9 a.m. so that the South Island non-commercial operators can discuss the charges.

For these operators, the charges are $B.ll for every take-off and landing, as well as 23c for every nautical mile for journeys where a flight plan is filed. Flights of more than 50 nautical miles require a flight plan. Mr Fulton said, “As far as effort is concerned, I would score the document about two out of 10, which is about the same as the last effort which was thrown out by the industry users for being unworkable and impractical. “It would not kill the club, but we would have to retrench to such a state where our membership would be drastically reduced. Flying would become the preserve of the wealthy.” The scale of charges would mean a big increase in the cost of flying training which now attracts no airways charges. A trainee or pilot doing a series of circuits would face heavy costs for all the take-offs and

landings, he said. The aero club is also in the charter business, and Mr Fulton has roughly calculated the new scale will double the airways charges for that work. About 25 per cent of the price of air tickets and charter costs was now going to the Government in goods and service tax and other charges, he said. An earlier attempt to impose these charges led to petitions within the aviation industry, and faced with a united stand, the charges were dropped. Mr Fulton said he thought similar petitions would be mounted this time, but the aero club would not initiate them. “I think there are better ways of fighting it,” he said. “We have got to show we are not a joke. The aviation industry is very soundly based and run. Through logical argument we will show that what they are. proposing would not be in the in-

terests of the public or the aviation industry or the country as a whole.” Mr Fulton may be able to attend one of the three meetings planned to be held in Auckland, the one for commercial operators on Monday. The chief executive of the corporation, Mr Frank Baldwin, , said the new charges would mean “a fairer distribution of costs.” “Our pricing is based on the needs to operate profitably under the Stateowned Enterprises Act, and to meet the requirements of the Commerce Act he said. “Against this background we have analysed each component of our service at each location to determine the price charged for each aircraft type. “For the first time, one type of flying is not subsidising another and an airport with comprehensive facilities is not being subsidised by one with basic facilities,” he said.