N.A.C. WILL RETAIN NORTHLAND ROUTES

Press, Volume CVIII, Issue 31658, 19 April 1968, Page 22

N.A.C. WILL RETAIN NORTHLAND ROUTES

(New Zealand Press Association) WHANGAREI, April 18. The chairman of the National Airways Corporation Board (Mr A. F. Gilkison) in Whangarei today “unequivocally and emphatically” denied that N.A.C. would allow a private airline to take over its Northland air services.

Mr Gilkison said that that he was authorised by the Minister of Civil Aviation (Mr Gordon) to deny also that the Minister was favourable to Sky Travel (N.Z.), Ltd, taking over the Northland routes. There was no truth in any part of the story. Mr Gilkison said that if Sky Travel applied to the Air Services Licensing Authority for a licence to fly into Northland, N.A.C. would strenuously oppose the application. A Press Association report from Auckland yesterday stated that a senior Government officer and Sky Travel confirmed the take-over proposal. Mr Gilkison said that the question of N.A.C. shedding any part of the Northland services had never been discussed. N.A.C. considered it had a duty to give New Zealand an adequate, safe and reliable air service; and in its 21 years of flying bad fulfilled this duty. The loss of $BOO,OOO a year on secondary routes was not a true loss because of the high value of the feeder serices helping in filling main trunk aircraft which ran at a profit. Future Growth N.A.C. was expecting the future significant growth in air traffic in New Zealand to come from the secondary routes. It was not true that "N.A.C. handed over its HamiltonGisborne route to Sky Travel because its aging, obsolete DC3s were losing money on it,” as the Press Association message stated. N.A.C. gave Sky Travel the route as a means of helping it to get into operation,” Mr Gilkison said. “If they drop it N.A.C. will restore its service on this route within 24 hours,” he said. National Airways was retaining for Northland two DC3s to maintain this route service for another two years. The Press Association story of Sky Travel’s proposals completely ignored the (wishes of the people of Northland, who would cer-

tainly not want to go back to the small aircraft days. Air crew of Sky Travel have been notified of the termination of their employment, a spokesman for the company confirmed today. The crews received notice last week after an unexpected change in the financial organisation of the company. They would remain "under suspension” until the Government had made a decision on the airline’s application to take over unprofitable NA.C. services in Northland, the spokesman said. He said it was hoped that basic points of the application would be resolved within a week. The airline was hopeful it would be able to revoke the notice to its staff as a result of the negotiations. If negotiations broke down, however, the spokesman said the airline would continue to service the best of its present routes and with the majority of its staff. The spokesman said the airline had since conducted successful negotiations with an Australian interest regard-

ing a shareholding. Mr Gordon said today that the Government had decided it could not support the full proposals put forward by Sky Travel for its future. He said this decision was taken after an approach by the airline last week. Mr Gordon said: “I am led to believe that since our talks there have been changes in the company’s finances, though I am not yet aware of the details. “The Government has not taken any steps regarding routes for Sky Travel, but I understand the company is now negotiating with the National Airways Corporation direct.” Mr Gordon said that N.A.C. had already helped Sky Travel with ground services free of charge for four out of the first six weeks of operations, and had offered to continue to give free ground handling for a further two months to enable the company to get established. The Minister said he was to have talks with the company next week.