AIR SERVICES.

Auckland Star, Volume LXVII, Issue 196, 19 August 1936, Page 10

AIR SERVICES.

COMPANY'S CLAIM.

COMPENSATION SOUGHT. effect/; of legislation. (By Telegraph—Own Correspondent.) WELLINGTON, this day. Compensation, on the grounds that they have been adversely affected by legislation passed on October 31, 1934, was to-day sought by New Zealand Airways, Limited, who presented a petition and stated a case before a Parliamentary. Committee of the House or Representatives. .Submissions of the company made to the Transport Co-ordination Board on March 23, 1935, formed a background for the company's claim. Evidence is to be given in support of the claim, and a report by the Transport Department will also be tabled. The case for New Zealand Airways is being presented by Mr. H. M. Mackay, managing director.

On behalf of the company, Mr. Mackay presented facts relating to the licensing and control of commercial aircraft services and in particular the effect o'i the legislation had completely tioners. It jvas contended that the effect of the legislation had completley destroyed the prospects of the company, by depreciation of its assets, which it was prevented from using to the extent necessary for such an enterprise to function and survive. It was contended that had the company been treated fairly and justly, as it had every right to expect, no petition would be necessary, as the company would have had an opportunity to continue in business to a successful degree and to function in some useful sphere of the Dominion's air transport system.

"It is a fact that the control and granting of aircraft service licenses was vested in the Transport Co-ordination Board, whose decision was final," continues the petition. "There was no provision.for appeal to any Other tribunal. Therefore tlie effect . of the /board's action and decisions are of paramount importance to the company, which claims to have been practically put out of business as a result."

"Rights Whittled Away." The company fui'ther contended that its rights were gradually whittled away and its assets and prospects jeopardised to an irreparable degree, and this became evident as the board continued its meetings. Just as surely all prospect of satisfaction in the shape of some workable license or redress disappeared also, the board having autocratic control with no right of appeal..The company applied for three routes, two of which were refused and one partly granted, a useless remainder, the main grounds for refusal being the objection of Great Pacific Airways, which never existed, other "proposed" applicants, and several other factors, notably that some of the grounds were not ready. •' "The board found no such reason a bar to the grant of a license to the company to operate confined to Timaru-Cromwell-Queenstown-Dunedin, where the grounds are in .no better-state than on the northern, routes.':applied for," the petition poiiited + -from the main route service . Zealand Airways had automatic rights, to ] air taxi work, restricting the company' to operating from Dunedin and Timaru only. This was not even a South Island license, and the effect was to rob the company of the bulk of previously-* enjoyed and payable business. This restriction was removed about three months later, but generally and not especially for Xew Zealand Airways. Record of Flying. "During this period it was apparent that the company could not adequately employ the large and competent staff it had up to that time. This staff dwindled away, and only a skeleton staff remained when the restriction was removed. New Zealand Airways' record at the time of hearing of the applications covered 500,000 miles of flying, and the carriage of over 15,000 passengers, without the slightest injury to passenger or pilot." The petition held that the Transport Co-ordination Board granted other competitive licenses without hearing the company's application ' for these routes, and despite the company's objection. New Zealand Airways were the only applicants proposing to comply with the three essentials stipulated by the board —that the machines used must be British, that the applications must comply with the requirements of the majority of the people of New Zealand, and that the capital must be New Znaland capital.

"The petitioners claim that a grave injustice lias been done to •tliem,"- concludes the petition, "and that tli3 general effect of the legislation and its administration has been to eliminate them from continuing the operations of any service to the community; that in the process the company has incurred heavy financial losses, and the final issue must be an almost total loss of all capital and effort with which the company has, over a long period of years, successfully pioneered in the greatest of all modern fields of transport—commercial aircraft services."