"No Sale Of T.E.A.L. To Outside Parties”

Press, Volume C, Issue 29469, 22 March 1961, Page 14

"No Sale Of T.E.A.L. To Outside Parties”

(NZ, Press Assn^—Copyright) CANBERRA, March 21. The Australian Minister for Aviation (Senator Shane Paltridge) told the Senate today that the joint recommendations on the future of Tasman Empire Airways, Ltd., did not envisage the sale of the company to “parties outside the present ownership.” Senator Paltridge, answering questions about the reported offer by Ansett Industries for T.E-A.L., said the joint recommendations had been drawn up by himself and the New Zealand Minister for Civil Aviation (Mr McAlpine).

Senator Paltridge said they provided full protection for the existence of the Australian overseas airline, Qantas. He said: “I have no knowledge of any offer and none has been made to this Government.” He said par value of Australia’s 50 per cent, holding in T.E.A.L was £NZBII,OOO. Senator Paltridge said he was unable to inform the Senate about details of the joint recommendations agreed upon at the recent discussions with Mr McAlpine because they were under consideration by the Governments. He said he would give the Senate a full statement at the earliest possible date. The Melbourne “Herald’s” Canberra correspondent said today that Australian civil aviation authorities did not believe the New Zealand Government would sell T.E.A.L. to Ansett-A.N.A. “Sale to N.Z.” He quoted aviation sources as saying it was agreed in principle that Australia would sell its share of T.E.A.L. to New Zealand for £1,000,000. This agreement did not envisage Ansett becoming the owner of T.E.A.L The negotiations with Australia had been conducted on the basis that the New Zealand Government wanted to expand T.E.A.L. into New Zealand’s overseas airline. The New Zealand Government was already negotiating with France and the United States for rights to extend T.E.A.L. service to Tahiti and Honolulu and the United States, the correspondent said. N.Z. Jet Plans He said it was also believed that New Zealand had plans to purchase giant jets to compete with other overseas airlines. At present T.E.A.L. operated three Lockheed Electra prop-jets and three DC6 aircraft on its service to Australia and the Pacific Islands. If Ansett Transport Indus-

tries purchased T.E.A.L., New Zealand’s plans for expanding its international iservices would be handicapped, he said. Qantas would operate services to New Zealand if T.E.A.L. became an entirely New Zealand-owned airline. The “Sydney Morning Herald’s" finance editor said today that Mr R. M. Ansett seemed to have the headwinds against him in his effort to persuade the New Zealand Government to sell T.E.A.L. for £2,000.000 or any price of that order. He wrote: “The biggest obstacle to Mr Ansett’s plans will be the attitude of the New Zealand Government. When that Dominion’s Minisetr for Air, Mr McAlpine, visited Canberra, in January, he seemed to have achieved an agreement in principle that the New Zealand Government should buy out the Australian Government’s half-interest in T.E.A.L. for £1,000,000. “Long-standing Wish” “It seems clear that the initiative for this proposal came from Wellington. It was the culmination of a long-standing wish that New Zealand should, for reasons of prestige as well as economic benefit, establish an international line to be developed after the pattern of Qantas. “Relations between Qantas and T.E.A.L. have been close and fraternal, and the organisations have directors in common. Sir Hudson Fysh himself has been one of the Australian representatives on ’T.E.A.L.’s board. “I understand that Qantas has raised no objection to the smaller brother going its independent way and becoming a competitor on world routes. Qantas seems prepared to enter arrangements with T.E.A.L. for a rationalisation of Electra services across the Tasman,” he said. Interest in N.Z. Mr Ansett’s interest in New Zealand had been

growing for some time. He had already bought a 49 per cent, interest in a small internal operator, Airlines of New Zealand. “His recognition of the nationalist desires in the Dominion for an overseas airline is implied in the remark that T.E.A.L., as a subsidiary of Ansett-A.N.A., would remain "operationally” a New Zealand company, staffed by New Zealanders. “The money enabling Ansett’s to buy T.E.A.L. wopld also come from New Zealand sources, he explained. But this would be money subscribed to an Australian company. There would be no doubt as to the country in which control of T.E.A.L. would be,” the writer said.