Help For Airline On Airport Dues

Press, Volume CII, Issue 30302, 30 November 1963, Page 14

Help For Airline On Airport Dues

(New Zealana Press Association)

AUCKLAND, November 29.

The assistance of the Government in deferring payments of airways and airport dues, after discussions which had been proceeding since December, 1962, had enabled South Pacific Airlines of New Zealand to maintain liquidity, says the chairman (Mr J. F. Johnston), in his annual report.

In the opinion of the directors of the company, some concession from the Government is justified during the period of establishment, when an airline incurs many abnormal and non-re-curring costs in establishing a route structure.

Concessions accorded in the past to the National Airways Corporation and Straits Air Freight Express, Ltd., create a very strong precedent, says Mr Johnston. The company would wish to be associated with statements recommending a joint committee of the Civil Aviation Administration and the Treasury to assess the ability of airlines to meet further increases in the rate of dues. S.P.A.N.Z. directors would also recommend that such a committee, incorporating representatives from the industry, should urgently investigate the liability for dues imposed on secondary route operator* in New Zealand.

The early part of the financial year was characterised by a general uncertainty as to the future role of the company. This undoubtedly created some lack of confidence by agents and the travelling public, which, in turn, restricted sales, says the report. The summer peak operation, while providing a satisfactory result, was not as buoyant as might have been expected. Bad weather, necessitating diversions, and the use of road transport to keep faith with passengers, also had their impact on earnings.

The number of hours flown by company aircraft fell from 5630 to 5003 during the year, and a total of 40,702 passengers was carried, against 41,094 in 1962.