Half-Share In Fiji Airways Purchased By T.E.A.L.

Press, Volume XCVIII, Issue 29046, 7 November 1959, Page 14

Half-Share In Fiji Airways Purchased By T.E.A.L.

(New Zealand Press Association)

WELLINGTON, Nov. 6.

Tasman Empire Airways, Ltd., has bought a 50 per cent, share in Fiji Airways, Ltd., at an estimated cost of £82,000. This was announced today by the Minister of Civil Aviation (Mr Mathison), who said that major policy decisions concerning the airline, such as proposals for new routes outside the Fiji Islands or any proposals for increased _ capital expenditure, would require the agreement of the Australian and New Zealand Governments. Mr Mathison said it was possible its operations might be extended to nearby Pacific islands. At present, the company, which owns a fleet of two Heron and three Dover aircraft, operates services over a network of 561 miles in the Fiji group of islands. Its most important service at present connects Suva

with Nandi. Co-operation between T.E.A.L. and Fiji Airways provides one-day flights from Suva to New Zealand cities. Mr Mathison said the Australian and New Zealand Governments had agreed to participate equally in the ownership of Fiji Airways. The shares will be held by Qantas and T.E.A.L. The shares held by T.E.A.L. will be regarded as being held in trust by T.E.A.L. on behalf of the New Zealand Government.

The inter-governmental arrangement also provides for participation in the ownership of Fiji Airways by other British interests.