Delay likely in fare rise on two routes

Press, 21 April 1979, Page 6

Delay likely in fare rise on two routes

PA Wellington Fares on two main air routes to and from New Zealand may remain undisturbed temporarily when the worldwide round of air price rises takes place on May 1. International flights from most countries will cost 7 per cent more next month, following a recommendation by the International Air Transport Association. The increase is to offset rising fuel prices. But details of the final fares on two New Zealand rotues have still to be established. These are the Tasman services flown by Qantas and Air New Zealand, and the United States-New Zealand service flown by Air New Zealand, Pan Am, U.T.A., and Continental. Air New Zealand has filed an application with Government officials to charge the 7 per cent increase on flights to Australia. It is understood that Qantas has done the same with the Australian Government.

No date has been set for the fares to become effective, and it is possible that if both Governments approve the applications the

new fare scale will not apply for some weeks. The fare rise for the United States-New Zealand run has been challenged by Pan Am, which has filed an alternative package involving working out a sum equal to 3.9 per cent of the economy Pacific fare, then adding that sum to all types of fares. That would mean a big percentage increase for budget and low-cost fares, but a low percentage increase for first-class travellers. That application has not been approved yet because New Zealand Civil Aviation officials are still working out its effects on the fare structure. There are no immedate plans to raise domestic air fares in New Zealand. For such an increase. Air New Zealand has to apply to the Air Services Licensing Authority for a public hearing. It has not done so, and the airline confirmed yesterday that such an application was not imminent.

However, domestic fares must be reviewed within the next few months, because of the rise in aviation fuel and other factors, such as higher wage rates. Continental Airlines still'

has not been able to reach agreement with the New Zealand Government on fares for some sectors of its new United States-New Zealand route, informed sources said.

The same sources said on Monday that the Los Angeles-based airline was angered by what it viewed as “absurd"” fare requests by New Zealand. Continental’s inaugural flight to Auckland via Honolulu and Pago Pago is due to leave Los Angeles on May 'l. But rate disputes mean that Continental can only offer fares “subject to Government approval” on some sectors.

New Zealand authorities want Continental to increase its rates on the Pago PagoAuckland section, and Continental’s request for the common rate Auckland-Los Angeles fare to apply to Auck 1 a n d-Portland and Auckland-Seattle is being resisted by New Zealand. Air New Zealand is permitted to fly only to Los Angeles on the United States mainland. The sources said that despite Continental’s impatience the airline is confident that the dispute will be resolved before the airline begins its service.