Air Licensing Right Upheld

Press, Volume CIV, Issue 30666, 4 February 1965, Page 13

Air Licensing Right Upheld

(N.Z. Press Assn. —Copyright) SYDNEY, Feb. 3. The full High Court of Australia, in a judgment delivered today, has upheld the right of the New South Wales State Government to licence airline services within the State. Sir Garfield Barwick, the Chief Justice, in a dissenting judgment, said a New South Wales Act regulating air services was inconsistent with Commonwealth air regulations. The State Government’s legislation had been challenged by Airlines of New i South Wales after a rival airline, East-West Airlines was granted a State licence

to operate services to Dubbo, a New South Wales town. Airlines of New South Wales had a Commonwealth Government licence to operate services to Dubbo, but faced big penalties if it operated without a licence from the State Government.

As a result of the dispute over licences, Dubbo has been without direct air services since October.

The Court awarded costs, estimated at more than £lO,OOO, agaipst Airlines of N.S.W., an Ansett subsidiary. News of the High Court decision was rushed by messenger to a meeting of the State Parliamentary Labour Party meeting at 11.20 a.m. The Minister for Transport, Mr McMahon, relayed the verdict to the meeting. Soon after a round of applause was heard. The Court held that: The Commonwealth cannot override the State Government’s power to control air services within its own borders.

Airlines of N.S.W., an Ansett subsidiary, cannot operate the Sydney-Dubbo service under a Commonwealth licence and without a State licence.

The decision means that the New South Wales Government can reallocate air routes in New South Wales. The Government can now proceed with its plan to cut Airlines of N.S.W.’s share of the routes from 70 to 51 per cent.

This will cost the Ansett subsidiary many thousands <rf pounds in profit The State Government can also increase East-West Airlines’ share of the routes from 30 to 49 per cent. East-West Airlines is the Ansett subsidiary’s only competitor.

Mr Don Shand, chairman of East-West Airlines, said outside the Court: “This is a great victory. The State’s sovereign rights have been upheld.”