AIR TAXI WORK BY CLUBS

Press, Volume LXXI, Issue 21391, 6 February 1935, Page 10

AIR TAXI WORK BY CLUBS

* GRANTING OF LICENSES DEFERRED ALLEGED UNECONOMIC RATES [THE PRESS Special Service.]

WELLINGTON, February 5. Opposing the fares submitted by the aero clubs for air-taxi work, New Zealand Airways, Ltd., delayed the issue of "automatic" licenses by the Transport Co-ordination Board to-day. The opposition was quite unexpected, and as evidence to show how the fares were computed, desired by the board, was not available, the granting of the licenses was held over until later in the sitting. There were applications from every officially recognised aero club, from the Manawatu Aero Club and from the Melbourne Centenary air race committee. On behalf of the aero clubs Mr S. E. Nielsen (New Plymouth) said three clubs had been forced to buy taxi machines to get revenue, and the four-year licenses were to enable them to recoup themselves for their outlay. Fares Agreed On An agreement had been arrived at between all the clubs on rates of fares:— Opposition to the granting of the licenses was made by Mr J. P. Ward, representing New Zealand Airways, Ltd., who took exception to the minimum fares submitted by the clubs. New Zealand Airways, he stated, had to buy its machines, but the clubs were operating machines lent to them by the Government or bought with the proceeds of art unions or public subscriptions. Mr Ward asked that evidence should be submitted to show that the fares quoted were sufficient to permit the machines to be fairly operated. If the clubs were going to operate air-taxis at that rate private concerns could not compete with them. Mr Nielsen said that the act required that minimum fares and charges should be fixed, although some of the clubs would not be able to operate down to them. Difference in Charges Mr Ward quoted from rate cards of the Otago and Wellington clubs to show that for a Moth the Otago club's charge for a flight from Dunedin to Wellington was £2O, but that Wellington's fare to Dunedin was £35. "New Zealand Airways," he said, "will be quite satisfied if the fares fixed by the board are those charged by the Wellington Aero Club." The chairman of the board asked for evidence to show the basis on which the fares had been computed. Mr Nielsen said he could not give the information then. The Western Federated Club would not operate under £3 10s an hour and the Wellington Club would not operate at the £2 an hour rate. Mr Nielsen said that there was no likelihood of the clubs operating uneconomically. Mr Ward: It is a well-known fact that clubs have operated uneconomically. "It is quite obvious that the licenses will have to be granted, but the question of fares will have to be settled," said Sir Stephen Allen. The application was adjourned.