Airline to import fuel to beat ban

Press, 28 August 1979, Page 3

Airline to import fuel to beat ban

PA Wellington ; Nationwide Air will go into the fuel importing business to try to overcome a Government-imposed ban on allocating fuel to the company. Last week it applied to the Air Services Licensing Authority for permission to run Scheduled daily freight services between Auckland, Christchurch, and Wellington. ■ As well, it wanted to run charters between Paraparaumu, Wellington, Christchurch, Auckland, Blenheim and Nelson. It was refused a licence when the Ministry of Energy told the .authority that, as a new ; (S % service, Nationwide would,'not get fuel. But ’ Nationwide 1 sees a Igop hple in the policy. It believes nothing can stop it importing its fuel. A director of Nationwide, Mr J. G. Rutherford, of Christchurch, said the Ministry had told it that if it imported its fuel, the Government policy would not apply. Nationwide was negotiating for aviation fuel from two sources, neither of which Mr Rutherford would reveal. At last week’s hearing, Mr Rutherford mentioned pos-

sible deals with a refinery in llran, and refineries in the United States. He said the only problem in New Zealand was that of storage. New Zealand had seven months Avgas in storage, and space was scarce. Once that was solved, Nationwide, working through the Shell Oil Company, would import its fuel. Mr Rutherford would not reveal the amounts involved. He said Nationwide would not need an import licence, nor would it need Reserve Bank permission to use oil company funds. A Customs Department spokesman confirmed that no licence was needed to import Avgas in bulk. The Secretary for Energy (Mr W.' M. Duncan), confirmed that if Nationwide was to import its fuel, his department would not be involved. “If they got their own supply direct for their own use, I am not aware of anything that could stop them doing so,” he said. Mr Rutherford said Nationwide already had a general charter licence, and it would use the fuel to flv its four Carvairs (converted DC4s). It would also reapplv to I the-: licensing authority for a ! change of use to its licence.