RENTAL CARS Authority Refuses Avis Application

Press, Volume CIV, Issue 30916, 24 November 1965, Page 22

RENTAL CARS Authority Refuses Avis Application

(New Zealand Press Association)

AUCKLAND, Nov. 23

The No. 2 Transport Licensing Authority (Mr W. J. Allingham) has refused an application by J. V. Carthy, a trustee for a company to be formed and known as Avis Travel Service (Auckland), Ltd., for a rental vehicle licence for 30 vehicles.

In a written decision, the authority said he did not consider there was monopoly control of the rental car industry in New Zealand. “The applicant supplied strong inference in evidence; that the desire of his proposed company was to expand vigorously in New Zealand with what must be regarded as an obvious aim comparable to that pursued in Australia, that is, as big a ‘slice of the cake’ as it could obtain,” the authority said. There was no secret that the company’s Australian counterpart had been financially able and prepared to stand a siege of losses until final ascendency. “A £AI million loan capital in the balance sheet structure shows the extent to which the company would go until its plans bore fruit.” The Authority said the applicant’s budget was purely provisional, and it seemed that the company may well take a number of years before it earned a healthy profit.

He was convinced the company could not; for some considerable time, carry on the proposed service economically. He therefore declined the application.