Japanese economist

Pacific air fares “exorbitant” says Japanese economist

A stinging attack on “exorbitant” air fares in the Pacific has been made by Mr Jiro Tokuyama, managing director of Tokyo’s Nomura Research Institute.

The institute is one of

Japan’s leading research bodies

on social and economic affairs.

Mr Tokuyama toured Aus tralia in April as a guest of the Australian Administrative Staff College. Main theme of his lectures was that in 10 to 15 years the Pacific Basin econ omy will have emerged as “the world’s most viable economic

:entre,” with Australia, Japan

and the west coast of the

United States playing a pivotal

role.

Among the most important immediate obstacles to this development, in Mr fokuyama’s view, is the high :ost of air travel in the Pa :ific.

In an exclusive interview with PIM in Sydney, he said: ‘ln projecting the Pacific Basin economy, we must not over look the remarkable progress that has taken place in the

means of transportation and

:ommunication.

“In the pre-war days, it took 12 days to cross the Pacific Ocean.

“The advent of the Douglas DC-6 after World War II en abled us to fly from Tokyo to San Francisco in 32 hours, via Wake and Honolulu.

“Late in 1959, the Boeing 707 shortened the time to 8.5 hours.

“Now a Concorde can make it in 4.5 hours.

“Likewise, 10 years ago it took 15.5 hours to fly from

Tokyo to Sydney via Hong

Kong and Manila. Today the

non-stop flight between the

two cities takes only 9.25 hours.

“Such rapid progress has turned the Pacific Ocean into

a ‘lake’ so to speak. Transport

costs have also come down

sharply.

“The round-trip by Sky

Train between New York and London now costs SUS 236.

“In some cases, air freight

from Los Angeles to

Yokohama is less expensive

than land freight from Los Angeles to Cleveland.

“Since the US Civil Aero nautics Board takes a positive stance toward the liberalisation of fares, it will not be long be fore the one-way air fare be tween Tokyo and the West coast of the US will be halved to SUS2SO-280, and the Tokyo- Sydney fare will also be halved.

“President Carter’s decision to let the market decide rates has made it likely that air pass enger fares and air cargo rates in the Australia-Japan-US Pa cific triangle generally will be cut by half in the next two or three years.

“Despite all these develop ments, I was surprised to learn that the Australia-Japan Foun dation has paid a round

trip fare, Japan-Australia,

Australia-Japan, of 443 600 yen (about SAI 730) for me.

“Because of the lATA agree ment, the air fares in the Pacific are exorbitant.

“I just cannot understand why you have to pay more to fly to Tokyo than to London.

“If the fare is lowered, I am sure both Qantas and Japan Air Lines will get more passen gers and thus more profits.

“It is precisely this rapid pro gress in transportation and communication that will

Transport

stimulate the Pacific Basin economy, and it cannot be overlooked as an important factor that will bring striking changes within the region in perhaps as little as three to five

years.”

MrTokuyama told PIM that the smaller Island nations of the Pacific could expect sub stantial spin-offs from these

developments, especially in the

early stages of dramatic in creases in tourist numbers.

He said he believed in the medium term there would also be major developments in the part-processing of raw material exports of the Island coun tries.