SKY TRAVEL MAY FOLLOW N.A.C.

Press, Volume CVIII, Issue 31657, 18 April 1968, Page 30

SKY TRAVEL MAY FOLLOW N.A.C.

(New Zealand Press Association) AUCKLAND, April 17. The Government is considering allowing Sky Travel (N.Z.), Ltd, a private airline operating from 12 North Island centres, to take over the unprofitable N.A.G. Northland services.

A senior Government official and Sky Travel confirmed this today after a sudden and unexpected change in the financial organisation of the company. One of the private airline's three shareholders, Mount Maunganui and Tauranga Stevedores, Ltd, has withdrawn; and airline representatives are now in Australia discussing a shareholding'by an Australian interest. Sky Travel has in the meantime bought back the Mount Maunganui company’s interest. The other two shareholders are Rex Aviation, Ltd, and Adastra Aviation, of Tauranga. Each of the three holds $5OOO in shares. It is believed that the Minister of Civil Aviation (Mr Gordon) is favourable to the

idea of Sky Travel taking over the services to Whangarei, Kaikohe and Kaitaia, but discussions are in the exploratory stages. Two Aircraft When Mount Maunganui and Tauranga Stevedores withdrew from Sky Travel, the airline asked the Minister whether the Government would consider allowing it to operate in Northland and to carry airmail to give more financial stability. Sky Travel began running two 9-seat aircraft only about six weeks ago and is losing some $2OO a week.

will replace DC3s on secondary routes. Sky Travel is already operating to Masterton. With another one, perhaps two, Cessnas it would be uniquely placed to serve Whangarei. Kaikohe and Kaitaia, with regular services also to Dargaville and Kerikeri. To stay in Northland, N.A.C., which is losing $BOO,OOO a year on all its secondary routes, would have to retain a DC3 or have expensive modifications made to airports.

N.A.C. handed over its Hamilton-Gisborne route to Sky Travel because its aging, obsolete DC3s were losing money on it. N.A.C. plans to retire its DC3s next December, leaving Kaitaia, Masterton, Westport, Hokitika and possibly Kaikohe, without N.A.C. services because these airports cannot take the Friendships which