Eight Reasons For An Airline

Press, Volume CII, Issue 30092, 28 March 1963, Page 14

Eight Reasons For An Airline

(N.Z. Press Association) AUCKLAND, March 27. Tasman Empire Airways was a most significant earner of vital export income for the nation, said the retiring chairman, Sir Leonard Isitt, tonight. He was speaking at a farewell dinner given by the New Zealand division of the Royal Aeronautical Society and was explaining why New i Zealand needed an overseas airline. He listed seven other maih reasons why the Dominion should have its own airline:— It reinforced the work of .the growing tourist industry. : It could help the country find and pioneer new markets As a vehicle of jmde. the airline was impcrißlt for a trading nation. It would ensure that New Zealand was equipped to

operate the long-range airfreighters in prospect It ensured the continuation of vital engineering and technical facilities in the country It performed an important maintenance and support role in the national defence It gave the country a stake in aviation —and aviation was the answer to the Dominion’s isolation. Sir Leonard Isitt said aviation today played a vital role in the tourist industry According to the prediction of the Pacific Area Travel Association. by 1968 tourism would contribute £3O million annually to New Zealand's gross national product. With a frequency of two return trips each week ! between New Zealand and the United States, T.E.A.L could bring 7000 American tourists here each year

Sirfegpnard Isitt said New Zealgs|g|i greatest oppor-'-uniffiNb* broaden its export base wK increased trade in its natural market—the Pacific market area—and the greatest opportunity to culti-

ivate the country’s acceptance jin this area at minimum risk j m minimum time was T.E.A.L. ! “We are approaching the (age of the long-range air1 freighter,” he said, “and I within the next few years it ) will be an economic proposi- ; tion.” Air-freighting would ■ change market methods and ! many production techniques. ! If New Zealand was to ‘take advantage of these great (changes, it was essential to i retain a sound, active and (responsive airline upon which such future developments could be built. ’ “In a final analysis, international airlines are instruments of national policyregardless of whether they are owned by governments outright or owned privately.” he said “Their fundamental (significance to governments is never, and can never, be disregarded.” I The hard facts which faced [the country’s economy today i had placed new emphasis on the value of owning an overseas airline in New Zealand.

This meant the airline would need the support and encouragement of a strong and positive government aviation policy in the years ahead . . . “and for the people's part.” he said, “greater willingness to express a support for. and a loyalty toward, a national enterprise in which all—as voters, as taxpayers and as fellow citizens—have a vital stake.”

TEA L. at present earned (an annual gross revenue of l about £3 7 million, said Sii (Leonard Isitt. After making full allowance for costs paid lin on overseas exchange, j there was still a net gain (to the national economy it) (overseas exchange of about 1C2.1 million. ; The value of overseas exchange saved by T.E.A.L. was worth considerably more than the total earnings from all the goods New Zealand exported to South-east Asia in 1961

These figures would be substantially increased with T.E.A.L.'s extended route structure and field of operations from 1965.