Aid To Airlines

Press, Volume XCVII, Issue 28660, 9 August 1958, Page 12

Aid To Airlines

There was little need for the warning, given by Dr. P. P. Heller, senior executive officer of the Civil Aviation Administration, against New Zealand’s attempting to enter into competition on world air routes, and perhaps a greater need to warn New Zealand not to do too little. As Dr. Heller pointed out, continued State assistance to New Zealand aviation is in the national interest and, until the industry is able, to stand on its own feet, New Zealand must be prepared to pay the price for an essential service that benefits, directly or indirectly, every person in the country. Those who object to State aid for the industry should remember that it is the practice in most other countries better able, because of their population and because they are not as isolated as New Zealand, to operate economic air services. Nor is aviation the only form of transport that receives, or received while it was growing, substantial assistance from the State. Though aircraft may be used by. only a minority, the whole population benefits from the convenience of cheap air ftiails, from the swift transport of some essential goods, and from a healthy aerial topdressing industry. Other countries also recognise, sometimes by a direct grant from defence funds, the value of a reserve of civil aircraft for the transport of troops in an emergency. Tasman Empire Airways, Ltd., of which New Zealand is half-owner, also provides essential communications with Australia and with some of the islands in the Pacific in which New Zealand has commitments and responsibilities. Both T.E.A.L. and the National Airways Corporation are now making a modest profit; and, since they also pay taxation and airport dues, they are beginning to contribute towards the cost of the facilities they use. Profitable operation, however, does not mean that either airline could possibly meet the full cost of providing airports, radio, and navigation aids and other facilities. Both are faced with heavy re-equipment costs and T.E.A.L., which, like N.A.C., owes much of its success to monopoly rights, will soon meet the chill breath of competition across the Tasman. Both airlines have retained a good standard of service and efficiency without the stimulus of competition, but, as a result of the negotiations between New Zealand and Aus-

tralia, T.E.A.L. will probably be ill-equipped to meet the challenge. Though no contract has yet been signed for the Lockheed Electra turbo-prop aircraft will replace its fleet of

DC-6’s, T.E.A.L. will be at a disadvantage in competing against the Australian airline, Qantas, which has been given rights across the Tasman. The introduction of large jet aircraft by Qantas, and by other international airlines flying in the Pacific, may relegate T.E.A.L. to a humble role as a “ second “string” service;- but it will still be of considerable importance ter New Zealand, even if it requires greater assistance. A comparable problem has been met by Britain in a comparable way. The value of British exports of aircraft and aero engines has been seriously threatened by the decision, announced in the Defence "White Paper last year, to reduce reliance on manned aircraft for the defence of Britain in favour of missiles. The reduction in aircraft requirements for the services means that research and development is no longer covered under the Government’s defence programme and the industry cannot hope to meet the cost alone. Yet, without basic research, the British industry could not survive.. As a result, the Government has agreed to assist the Industry’s research on aircraft for civilian use so that it will still be a leader in this field, will continue to provide valuable export earnings, and will continue to supply Britain’s own needs.