Air travel perks criticised

Press, 16 June 1988, Page 5

Air travel perks criticised

PA Auckland Air New Zealand’s policy of giving staff and families almost free travel was criticised by an Auckland businessman on Tuesday. Mr Barry Seagar said he was amazed airline staff could continue to travel at about 10 per cent of the usual cost when the rest of the country was being asked to bite the bullet.

“I have just encountered an unbelievable situation where the managing director of an Auckland company, on transfer to Europe, is travelling first class from Auckland to Frankfurt for $3OO because his brother works for Air New Zealand,” he said.

The man had been given money to cover the full fare by his company. Mr Seagar said this example was typical and questioned how airlines coiild justify perks when th£ Government was tax-

ing business benefits. “As a taxpayer, I find this offensive.”

He would take legal advice to see if he could act against the airline, he said.

An Air New Zealand spokesman, Mr Cameron Hill, said travel concessions to staff and families were in line with world practice and did not cost taxpayers money.

“In fact the Government makes money out of the use of the concessions, as tax is paid,” he said. Regulations stated concessions were not to be used for business travel and were issued only for economy class. "We are not discounting that he could have ended up in first class but that is another aspect we would like to investigate,” Mr Hill said.

“Staff travel is privilege, not a right, and can be withdrawn if any breach of Air New Zealand’s regulations, is detected.” f