Extra Licences Given Straits Air Service

Press, Volume C, Issue 29674, 18 November 1961, Page 16

Extra Licences Given Straits Air Service

l New Zealana Press Association/

WELLINGTON, Nov. 17. An application by Straits Air Freights Express, Ltd., for two additional licences to operate Bristol Freighter aircraft was granted by the Air Services Licensing Authority today. The renewal of the three earlier licences was also granted. In bis oral decision the chairman (Mr E. D. Blundell) said the purchase by S.A.F.E. of a sixth reserve aircraft had been supported by the Railways Department. Neither the renewal of licences nor the increases had been opposed by NA.C. The lack of objection by N.A.C., however, had been subject to the authority incorporating the particulars of the agreement reached by the Railways, NA.C., and SAF.E.

The Ship Owners’ Federation had opposed the application to increase the number of aircraft. They had contended that the number of aircraft was adequate and that it was not an opportune time for increased competition.

Shipping Services The air transport service by SAF.E, to all practical purposes, was for air freight. There was, however, some provision for passengers. For example, when ears were taken across the strait people were allowed to travel with them.

The predominant concern of the authority, said Mr Blundell, was for the public interest. In spite of big developments in the transport

industry since the Second World War and the increasing need for air transport, the greatest need in Cook Strait lay in the maritime services. S.A.F.E., therefore, had to satisfy the authority it was entitled to additional numbers of aircraft. The business of S.A.F.E. revolved on virtually one customer—the Railways Department. The agreement with the railways ensured Shat this would be the position for some time. S.A.F.E. provided an air bridge in the railways system of toe two istands. The need of this bridge was not challenged. It had been the practice in the past to use some aircraft for purposes other than an air bridge. For example, S.A.F.E. carried live stock and stone fruit from other parts of the South Island. S.A.F.E. had had to Wait some years before the present application came to a hearing. Since 1954 the increases in its traffic had been 16.33 per cent, on the earlier average of 60 flights a day. Last year the percentage had increased again to 24.7 and this figure was likely to increase this year, said Mr Blundell.

So great had been the demand for the air bridge in toe last few years that there had not been the utilisation available for work further afield than Cook Strait. The aircraft had been overtaxed in the last year or two. On the business figures and having regard to toe lower utilisation a year in respect to toe Cook Strait

area, a case for five aircraft had been made. Effect of Ferry The rail-sea service to Picton would begin next year and consideration had been given to the effect this service would have on rail-air. An opinion, with which the authority agreed, had been put forward that rail-sea would take 25 per cent, of the business of rail-air. But there had been a steady increase in rail-air demands and it seemed the 25 per cent, would be replaced or exceeded by normal expansion.

The Anchor Shipping Company, and the Pearl-Casper Line seemed to be making good profits and there was a steady increase in the ; demand for rail-sea services. The authority was prepared to grant the renewal of licences and the increases in licences as sought, for seven years. This was subject to the condition that should S.A.F.E. cease to operate solely for the railways, the licences would terminate from the time of the cessation.

The authority also restricted S.A.F.E. to 1400 hours’ flying a year outside the Cook Strait area.