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Extension of time for cost allocation review



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news release

EXTENSION OF TIME FOP COST ALLOCATION REVIEW

(Statement by the Hon. Hal„ Fife, Μ. P . , Minister for Aviation)

The Minister for Aviation, Mr Hal. Fife, today agreed to

extend the completion date for the current cost allocation reviews

for TAA and the Ansett group of airlines.

This followed a request for an extension of time by

Mr Ken Hraith, the Chairman of the Independent Air Fares

Committee (lAFC), and the Committee will now report by no later

than 13 August instead of 30 June, 1982.

The purpose of the cost allocation reviews is to

examine the allocation of airline costs to the flagfall and

distance components of the airlines’ fare formulas and thus

provide an equitable basis for future air fare determinations.

"I have agreed to extend the time because of the

significance of these cost allocation reviews to future

air fare determinations", Mr Fife said.

"The other major factor which influenced my decision,

was that the next cost allocatipn review for TAA and the Ansett

group of airlines cannot, under the IAFC Act, occur for at '

least another two years„ . .

"I understand, the Committee is still awaiting some

submissions and wishes to hold further public hearings later

this montho

"It is therefore imperative that the IAFC is given

sufficient time to obtain and consider all submissions and

relevant information", Mr Fife said.

CANBERRA 24 JUNE 1982