The Press THURSDAY, NOVEMBER 4, 1954. Airline Accounts

Press, Volume XC, Issue 27498, 4 November 1954, Page 12

The Press THURSDAY, NOVEMBER 4, 1954. Airline Accounts

New Zealanders, learning only now of the heavy operating loss of Tasman Empire Airways, Ltd., for the year ended on March 31, will find it easier to understand and approve the determination of the Australian and New Zealand Governments, who are joint owners of the airline, to put the company on a sound financial footing. A loss of £144,113 m the year, compared with a profit of £52,304 in the previous 12 months, is certainly a serious setback, probably the worst in the company’s history. It was attributable, no doubt, to the high cost of operating simultaneously flyingboats and chartered landplanes. Now that the reorganised company has secured its own efficient landplanes it should have no great difficulty in making the air services pay their way.

To New Zealanders, who through their government are part-owners of the airline, it will. come as something of a surprise to learn belatedly of the year’s financial results .through a cabled report from Canberra of the tabling in the Federal Parliament of a return by the Australian Auditor - General. They have, in fact, received very little information in past years about the financial position of the Stateowned airline; and what they have learnt they have learnt in diverse ways. Occasionally, the operating profit or loss has been announced by the chairman of directors; once or twice the information has been given to Parliament by the Minister in charge of Civil Aviation; at least once it has been made known only through the disclosure in the Public Accounts of the transfer of a sum required to,make good New Zealand’s share of the operating loss. This is very unsatisfactory. The Government should take an early opportunity of having the company’s operations, financial and otherwise, brought under the regular view of Parliament. As a State trading coronly half of the shareholding is New Zealand’s— Tasman Empire Airways, Ltd., should be required to submit an annual report, balance-sheet, and operating account to Parliament as the National Airways Corporation now does. There is unlikely to be any objection to such a procedure from Australia. Indeed, the public of both countries have every right to know the facte about the working of their airline; and it is in their interest add that of the company that the Acts should be known. '