Methven firm seeks helicopter licence

Press, 3 October 1979, Page 3

Methven firm seeks helicopter licence

The budgeting used tol support a Methven com-1 pany's application for a heli-] ccpter licence was written j by a “helicopter virgin,” the Air Services Licensing Authority was told yesterday. The budget was written by j someone who had no idea of I. the cost of running a heli- > coy 'r in New Zealand, said' the general manager of Al-j pine Helicopters, Ltd (Mr R. j D. Spary). The authority beard appli-i cations in Christchurch by r Methven Air. Ltd, to replace: a Cessna 185 aircraft with a! Hughes 500 D helicopter, and; to acquire rights for aerial! topdressing and mis-1 cellaneous air work. Proposals for heli-skiing] on the Mount Hutt ski-field) were included in the “mis-j cellaneous” category. Objections were heard from six other companies which provide aerial topdressing and other aerial works throughout the South Island. They were Central Aviation Company. Ltd; Hart, Aerial Topdressing, Ltd; Rowley Aviation, Ltd; Air Work (New Zealand), Ltd; Alpine Helicopters, Ltd; and Whirl-Wide Helicopters, Ltd. Mr R. J. Craddock, who appeared for Methven Air, told the authority that there was sufficient aerial work available for a high level of I use from the outset. He ] called eight witnesses to] support the application. Charles Robert Ensor, a• farmer at Glenrock station. ] in the Rakaia Gorge, said) that the helicopter would) provide a valuable service] for his property. He would ■ use a helicopter about] 10 hours a year for muster-i ing, fencing, and stock spot- j ting. There would be much ] greater use if there were a] heavv snow, Mr Ensor said. Mr R. B. Sandford, a Christchurch solicitor, said he appeared for a noted American ski-instructor, Mr R T. Lunceford, who believed that Mount Hutt was an ideal site for heli-skiing. Approaches to another helicopter firm, Whirl-Wide, had failed to get any response, but an approach to Doug Hood, Ltd. which would finance Methven Air, had gained an “interested and immediate” reply.

Under cross-examination. M’ Sandford said that two flights were being considered for the heli-skiing: a short one at the back of Mount Hutt, and a longer! one lasting about four hours. : Andrew Carrington Yates, a Methven farmer, told the authority that the proposed helicopter service would benefit the chalet-type accommodation he ran at Puddinghill station for tourist skiers. At present he ran a 12-bed chalet, but four other

chalets, each with 15 beds, Would be ready for occupation in a month. It was essential that such a helicopter service be available at any time and in the vicinity of Mount Hutt, Mr Yates said. Graeme .John Mangin, a Methven farmer and a director of the Mount Hutt Ski and Alpine Tourist Company, Ltd. said that heli-ski-ing would prove of immense! benefit to the company and! to the country as a whole. However, it could not be provided on a casual basis, but a regular service was necessary. Peter Yeoman, chairman of the Mount Hutt Company, said the helicopter would be used for rescue, field patrols, avalanche assessment patrols, ' field openings, mechanical repairs, and promotional work. Previous promotion would be jeopardised without the use of the helicopter, he said. Because of the unpredictability of the weather, it was essentia! that the helicopter be locate ’ as close as possible to the field. It was estimated that 50 persons a day might use a helicopter fo heli-skiing, and 20 persons a day would he interested in sight-seeing. Expansion of the ski-field was planned for the 1981 season and the helicopter could be used for up to 250 hours a year, Mr Yeoman ! said. Gary Riel rd Leech, ant Ashburton chartered: acccuntant, presented to the [authority a budget covering I the proposed helicopter! [operations. The budget : allowed for annual flying I time of 800 hours, 1000! hours, or 1200 hours. It was[ the budget which was later condemned by Mr Spary. I Under cross-examination,| Mr Leech said that 260 fly-1 ing hours a year would produce a profit of about $12,000. Douglas Hood, a director of Methven Air. a director; and principal shareholder in; Doug Hood and a director of the Mount Hutt Company, gave evidence in support of - his application. He said that Doug Hood would provide sufficient financial backing for Methven Air, but under! cross-examination he said heli could not provide a balance-!: sheet for Methven Air. He* said its present assets were! two licences and about; $2OOO in a bank account. Mr Hood said that Doug 1 : Hood had bought the heli-: copter in November, 1978.1 He considered there would! be more than 1000 hours of!: work available for it. h

It was envisaged that the! helicopter would be avail-! able for other work when it! was not used on Mount Hutt| skifield. Mr Hood presented: a list of organisations, busi-l

nesses. and farmers who had: been surveyed and had sup-; ported his proposal. Christopher David, Shaw, a! commercial pilot, said he! had undertaken this survey.! Slightly more than half oft those approached had given! an estimate of annual-use of* the helicopter. Mr Shaw said! he had guessed at the likely; use by the other persons; and organisations. i Five witnesses were called! ■by the objectors. Leslie Nicholas Davidson.; general manager of Central! Aviation of Roxburgh, said! he objected to the appli-i cation because the area was! already adequately' serviced! by helicopters; because an-: other company would harm; the viability of those already! working there, and because; it would not be in the public! interest in an area where at least six companies were competing for the existing work. Peter Rowley, managing director of Rowley Aviation, said his company was licensed to cover Marlborough, Nelson, the Westland: district, and Canterbury. It! had one helicopter based ati Amberley, for which the de-l mand had declined in recent: years. He said that a minimal percentage of the com-! pany’s work involved top-; dressing: 60 per cent of the: work was spraying, for: * which Methven Air was not! applying fop. a licence, and! barely 10 per cent of its! [work came from the “vast”; : Westland district. i John Brazier, managing! [director of Air Work, said; 85 per cent of his company’s! I work was in the areal I affected by the application.; |His company was making al | loss at present, because its (licence confined it to regions east of the main ranges, the | area sought by' Methven Air. [Granting of a licence to ! Methven Air would be ; highly prejudicial to his company’s economic position, Mr Brazier said. I Robert Donald Spary, of * Alpine Helicopters, said the [budget prepared by Methven I Air “grossly underrated” the cost of maintenance of the helicopter. Based on his experience of other Hughes 500 s, the company’s estimate of $3O a flying-hour cost of [maintenance should really be loot less than $lOO an hour, [Mr Spary said. Parts were! [very expensive in New Zealand, and fuel costs were 50 per cent higher than estimated because of theft, [freight, and heavy use. “The budget has theoiretical figures based on the! ■ manufacturers’ figures and! jdo not bear any real rela-i tionship to operating fig-j lures,” Mr Spary said.

The chairman of the authority (Mr J. H. O. Tiller) said the authority would reserve its decision.