Airline Merger “Not Feasible”

Press, Volume CII, Issue 30126, 9 May 1963, Page 16

Airline Merger “Not Feasible”

(NX. Press Association) WELLINGTON. May 8. A complete amalgamation of LEAL and NAC. is not feasible in the view of the general manager of KAC., Mr D. A. Patterson. He made this clear at the closing session today of the N A.C. press forum when giving a prepared reply to a question whether it would be economically advantageous to incorporate TEA.L and N.AC as a whole Mr Patterson said the decision on whether complete amalgamation of the two airlines should take place was one for the Government to determine after a full study. Mr Patterson also referred

to the committee set up under the chairmanship of Sir Andrew McKee, the chairman of directors of N.AC, to take the fullest advantage of the services and facilities of each airline and to achieve the most economical operation He said this was not in “amalgamation” committee but rather one to effect coordination and integration of services and facilities tn the broadest sense and to obtain the most economical operation

Mr Patterson said the matter of amalgamation of external and internal services had bttti studied by both the British and Indian Governments and, perhaps, others. It had been found impractical for a

variety of reasons, many of which applied io New Zealand. Among points made by Mr Patterson was that no avenue existed for the achieving of economies by the joint use of TEAL. and N.A.C. fleets NAC was essentially a abort haul operator. He also mentioned difficulties in establishing joint overhaul and matatsnence facilities and said a final aspect of the proposal was the danger of putting all one’s eggs in the same basket. It might be thought, be said, that economies could be found in the joint use of aircrews. Apart from the fact that it was universally recognised as undesirable to indulge in indiscriminate

interchanges of aircrews between types of aircraft, the crews of N AC. and TXA.L. were both operating st near the maximum permissible limits and there was, therebee. no scope for economy tn this direction. Mr Patterson ssia he did not contend, however, thst there were no savings to be found in a closer co-opera-tion between the airlines TE.AL. and N AC. had moved a considerable distance tn agreement on the provision of common selling centres and the first step to this was to be seen in Christchurch where they bad a common NAC. - TEAL freight depot. These could be extended to other centres as opportunity appeared.