TRANS ISLAND AIRWAYS

Press, Volume XCVIII, Issue 28890, 9 May 1959, Page 12

TRANS ISLAND AIRWAYS

Bank Appoints Receiver

The Christchurch-based airline, Trans Island Airways, Ltd., was yesterday placed in the hands of a receiver.

The Bank of New Zealand appointed Mr F. Nicholls, a public accountant, to recover a debenture sum fixed at £4OOO. The bank is first debenture holder and now takes precedence over second debenture holders who appointed Mr A. N. Stone, a public accountant, on May 1 as a receiver and manager to recover £lO,OOO.

The airline was formed by a group of North Otago business,men in 1956 with the object of maintaining an air link for Oamaru which had been relinquished by the now defunct South Island Airways on the ground that it was uneconomic. Two of its planes—a Beechcraft, which was bought for about £ 19.000, and a Lockheed Electra, purchased for £16,000 —are grounded at Christchurch airport for repairs after accidents. “Willing to Carry On” A spokesman for the airline said yesterday that the company wished to put its affairs in order so it could go back to flying again. However, it would not be possible to do that until receivers had liquidated the amounts of their demands and it was seen what was left. “The company is still quite willing to carry on,” he said.

In the meantime all the company’s operations have been suspended and its telephone has been disconnected from its Harewood office.

Trans Island Airways purchased two multi-engine aircraft from the United States to use 'on several services for which it was licensed but was hindered by a series of mishaps to the aircraft themselves, arguments with the Civil Aviation Administration, competition and lack of capital.