AERO CLUBS’ COMPETITION DISTURBS AVIATION FIRMS

Press, Volume XCVIII, Issue 28823, 18 February 1959, Page 10

AERO CLUBS’ COMPETITION DISTURBS AVIATION FIRMS

(New Zealand Frees Association/

WELLINGTON, Feb. 17. Some aviation firms in New Zealand are becoming concerhed at new forms of competition from aero clubs, which they say the State places in a privileged financial position. Their views have been expressed by a member of the Aviation Industry Association.

The most glaring' of recent cases had been the displacement by the Auckland Aero Club of one of the oldest established firms in the carrying out of fire patrols in the centre of the North Island, he said. The firm that previously carried out the work received no subsidies or concessions, whereas the club had undertaken the work with its aircraft, presumably -imported duty free. It was the View of firms concerned in that particular matter that the action of the Auckland Aero Club required a complete review of the Government assistance and subsidy given to that club. The 20 or 30 aero clubs- were Jjfcavily subsidised; on the plea ithat "they trained pilots, the spokesman said. They were allowed to import aircraft virtually duty free and paid no income tax on their operations. v 7 Earlier in the history of New Zealand avia'tion the clubs operated a small number of taxi and charter passenger services. The firms did not object to that, but they did object to aero- clubs competing in. commercial activities. that had been pioneered and established by aviation concerns. Certain firms undertook the training of pilots* but they did so without any Government subsidy and in places where the clubs had conspicuously failed to meet the public requirement. The view of several firms in the association was that clubs and commercial firms/ should be

on an exactly similar basis when r they were doing similar work. 1 Clubs that received a subsidy, i were supported by a subscribing ? membership, were allowed to im--1 port aircrdft tax free and not s pay income tax, .should not be - allowed to carry on commercial r operations unless firms doing the same work had the same

privileges. Firms that were training pilots because of the inadequacy of club facilities should be eligible for the same concessions as clubs received. Commenting on this statement, the secretary of the Auckland Aero Club (Mr J. Jones) said that no aero club received a subsjdy for commercial work. The subsidy was merely to train pilots. Commercial work accounted for only 20 per cent, of the club’s flying. He said that clubs imported aircraft at a preferential rate of duty, not duty free. - Referring to the fire patrolling work, he said that in quoting for the job and being given it the Auckland club Competed on equal terms with commercial firms.