AIR TAXI SERVICES

Dominion, Volume 28, Issue 113, 6 February 1935, Page 10

AIR TAXI SERVICES

Opposition to Aero Clubs’ Minimum Fares INFORMATION SOUGHT BY BOARD Opposing the fares submitted by the aero clubs for air taxi work, New Zealand Airways Ltd., delayed the issue of “automatic” licenses by the Transport Co-ordination Board yesterday. The opposition was quite unexpected, and as evidence to show how the fares were computed, desired by the Board, was' not available, the granting of the licenses was field over until later in the sitting. There were applications from every oflicially recognised aero club, from the Manawatu Aero Club, and from the Melbourne Centenary Air Race Committee.

On behalf of the aero clubs Mr. 8. E. Nielson (New Plymouth) reviewed the conditions which had led to the inclusion of the clause regarding aero club services in the Act. When, owing to financial conditions, the supply of pupils had fallen off, some of the clubs had purchased commercial machines. The licenses were to be granted for a term of four years, by which time it was thought that these machines might be written off. The period of license would enable the clubs to recoup themselves for their outlay. An agreement had been arrived at between all clubs, as to the following rates of fares Single passenger machines, £2 per hour; 2 passenger machines, £2/10/- per hour; 3 and 4 passenger machines, £3/10/- per hour. In the case of the Tainui, owned by the Melbourne Centenary Air Race Committee, the fare proposed was £6 per hour.

Opposition to the granting of the licenses was made by Mr. J. P. Ward, representing New Zealand Airways Ltd.., who took exception to the minimum fares submitted* by the clubs. New Zealand Airways, he stated, had to buy their machines, but the clubs were operating machines lent to them by the Government, or bought with the proceeds of art unions or public subscriptions.

Mr. Ward asked that evidence should be, submitted to show that the fares quoted were sufficient to permit the machines to be fairly operated. The fares of clubs varied, and he claimed that £2 per hour for a single passenger machine was inadequate. If the clubs were going to operate air taxis at that rate, private concerns could not compete with them. Mr. Nielson said that the Act required that the minimum fares and charges should be fixed, although some of the clubs would not be able to operate down to them.

Mr. Ward quoted from the rate cards of the Otago and Wellington clubs to show that for a Moth, the Otago club’s charge for a flight from Dunedin to Wellington was £2O, but that Wellington’s fare to Dunedin was £35. “New Zealand Airways,” he said, “will be quite satisfied if the fares fixed by the Board are those charged by the Wel-lington-Aero Club.”

Mr. Nielson said that the fares quoted covered flying time in both directions. The chairman of the Board asked for evidence to show the basis on which the fares had been computed. Mr. Nielson said he could not give the information then. The Western Federated club would not operate under £3/10/- per hour, and the Wellington club would not operate at the £2 per hour rate, “Should we. not fix different minimum fares for different clubs?” asked the chairman. Mr. Nielson said that there was no likelihood of the clubs operating uneconomically. Mr. Ward: “It is a well-known fact that clubs have operated uneconomically.” K “It is quite obvious that the licenses will have to be granted, but the question of fares will have to be settled,” said Sir Stephen Allen. The application was adjourned.