Support for air merger plan

Press, 13 April 1988, Page 8

Support for air merger plan

NZPA-AAP Canberra The Business Council of Australia said yesterday it supported Federal Government moves to join Qantas and Air New Zear land as part of a greater integration of the econo--mies of the two countries.] The chairman of the Business Council’s task force on closer economic relations, Mr John Mil-burn-Pyle, said that aviation was an important element in Australia’s longterm relations with New Zealand. » { He urged the two Governments to do their utmost to achieve the proposed rationalisation. I

“It would be a highly regrettable step if this opportunity was lost and New (Zealand’s aviation , industry was integrated uith that of a third country like Singapore or Britain rather than with Australia,” Mr MilburnPyle said. j ! •!'■•! "We{ need to rationalise . the markets and production of goods and'services in the two) economies Jo maximise our {efficiency, pool our strengths and be more competitive vis-a-vis third countries." The! merger proposal originally envisaged incorporating Qantas, Air New Zealand and the Aus-

tralian internal carrier, Australian Airlines, into an { international superairline to) compete better on! the world market.

However, on{ Sunday the Federal Transport Minister,) Senator Gareth Evans, said the plan to merge the three airlines into a ! new Tasman carrier ; would not go ahead. | • Instead the two Governments were continuing to explore a closer relationship between 'Qantas and Air New Zealand. Combined, the two airlines wpuld be the sixth-largest international airline in the world. ; !