Reduced Pacific

Little Hope Of

Air Fares

By a staff reporter

There is very little chance of itandard trans-Pacific air fares >eing reduced when the Intema

ional Air Transport Association

eviews these fares at its annual neeting, to be held at Cannes,

7 rance, in mid-September.

Five of the six operators on trans acific runs—Qantas, PanAm, UTA, .ir New Zealand and BOAC—will isily overrule efforts by the sixth perator—Canadian Pacific—to cut ir fares by up to 25 per cent.

Canadian Pacific’s vigorous efforts » cut standard air fares were quashed / the “big five” at the association’s eeting at Honolulu in October, )66 (PIM, Nov., 1966, p. 127).

The chances of big cuts in trans acific air fares were much in the ;ws in May, following statements j the probable second American rline on the South Pacific—Eastern irlines {PIM, May, p. 41).

Statements reported to have been ade by Eastern’s Australian director, r Howard Beale, that Eastern □uld start flying the South Pacific ith fares at only 75 per cent, of e current charges, were later snied by the airline’s Sydney man ;er, Mr. Peter Boxall.

'Misquoted'

Mr. Boxall told PIM Sir Howard id been “misquoted” by reporters i his arrival at Sydney airport after tending negotiations in the US be een Eastern and the US Civil ;ronautics Board.

He said Sir Howard had stated that s company had submitted to the S board that it could reduce fares 25 per cent, and provide a new nth service at two-thirds of the onomy fare. It was understood at this would require lATA agree ;nt.

Sir Howard had also emphasised at the board’s recommendation for istern Airlines to fly the South icific bad yet to be approved by esident Johnson and the Australian avernment. But Sir Howard was onfident” this would be done.

Whether or not Sir Howard was

nisquoted, there was certainly some harp reaction to his statement.

Jantas and UTA described it as purely propaganda”, BOAC tabbed : “premature” and Air New Zealand Did PIM that if any fare reductions fere on the way they would not be n standard fares, but an expansion f excursion fare rates at specified mes.

All argued that general costs in the viation industry were currently very igh.

Another airline with similar think ig to Canadian Pacific on air fares ill be welcome in the South Seas, svertheless. There will be more ressure on the airlines to reduce fares id competition will be stepped up.