NATIONAL SERVICE BY AIR

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

NATIONAL SERVICE BY AIR

dnion Company’s Part FOUR APPLICATIONS FOR LICENSE Effect of Mr. Ulm’s Death Four applications for the right to run a trunk air service through New Zealand were made before the Transport Co-ordination Board yesterday. The personnel of the authority is Sir Stephen Allen, chairman, Messrs. H. B. S. Johnstone and L. W. Aiderton. The first application was by the Union Steam Ship Company, for and on behalf of National Airways of New Zealand, Ltd., for a service between Palmerston North and Dunedin, with intermediate stops at Blenheim and Christchurch. Mr. N. S., Falla, managing director of the Union Company, said that the - prospective interest of his shipping company dated back to 1913, the year in which the company was reformed, when provision was made for aviation in the articles of incorporation. 1 For its scheme the company had had the advice of experts. That of Squadron Leader M. C. McGregor had been chiefly relied on, and, in the event of a license being granted, he would enter the service of the company. The company’s aim was a short strong trunk line which could be fed by branches, and. the cost of that service, with speedy machines, wireless equipment, both beacon and telephone, and ground organisation, would be quite near to £lOO,OOO. This service would co-ordinate with the limited express from Auckland, and the airway terminus at Palmerston North could also be fed from Taranaki and the East Coast. The short trunk line would give ample opportunity for feeder services,, which could no doubt be arranged by other companies. Finance Available Immediately. Finance was available for immediate action, and if the s license were granted an expert would straightway proceed to England to arrange for the'purchase of appropriate machines and equip-, ment, and the service would be establishe'd without delay, Mr. Falla continued. It had been made a point of policy to get British aircraft, and machines witn more than one engine, although the type had not yet been definitely determined. They would carry eight to 10 passengers. At a later stage it was the company’s intention to approach the Government to discuss the question of a subsidy. “The experience of every country which so far has developed aviation has been distinctly along these lines,” Mr. Falla continued. “One hardly can expect the people of New Zealand immediately to take to the air and unless the aeroplane becomes popular, with the expectation of full payloads from the outset, no company starting a service can hope to incur other than a very heavy financial loss.” In reply to Mr. J. P. Ward, representing New Zealand Airways, Mr. Falla said that National Airways of New Zealand, Ltd./ existed in name only, but the name was optional, and had been employed merely because his company wished to operate its air services under a different name from that under which it conducted its shipping. Further questioned, witness said his company had not been blind to the possibility of a Tasman service, but did not regard it as being of immediate importance. Postpouement Sought. Applying on behalf of New Zealand Airlines, Ltd., the company with which the late Mr. C. T. P. Ulm was associated, which proposed an AucklandInvercargill service, Mr. S. .E. Nielson sought a postponement of the case for licenses until June, if possible, for - the purpose of enabling the reports of Mr. Ulm as to conditions, aerodromes, plant, and operation in New Zealand to be collated. Mr. Nielson, who appeared as the representative of Mr. Ulm’s interests, and Great Pacific Airways, Ltd., said that had it not been for his death about two months ago, Mr. Ulm would have been present to submit his plan to cover the whole of New Zealand.

With due respect to New Zealand aviators none of them had had experience of operating an airline. The service conld not be operated without a subsidy, but such a national service had a defence value. Sir Stephen Allen: If the applicants will not operate without subsidies, what is the use of granting licenses? In answer to Mr. C. G. White, who represented the Union Company, Mr. Nielson said that Great Pacific Airways would find part of the'capital of his company. The reports had been compiled by Mr. Ulm personally, and it now remained for others to make themselves familiar with them. Mr. T..S. Withers,,for Dominion Airways, Ltd,, endorsed Mr. Nielson’s suggestion for an adjournment, and thought that three months would be sufficient. So far as he was concerned, it had originally been intended that his company should operate without a subsidy, but later developments had made the directors doubtful whether they could do so, in the early stages. If necessary, they would apply to the Government for a subsidy. New Zealand Airlines, Ltd., and Dominion Airways, were associated, and, assuming that a license was granted to one of them, would merge. Room for One Service Only. As a matter of returns it was impossible to operate a service between Auckland and Palmerston North. Hence it followed that a service such as that proposed by National Airways would divest the Auckland and Taranaki provinces of an air service for many years. His service would , be operated by multi-engined aircraft carrying 6 to 10 passengers, and it was proposed also to use British machines, as a matter of policy. “Even the Railway Department should not attempt to stop the march of progress,” Mr. Withers said. “Already New Zealand is the last country in the world to have an air service. Any slight loss that the Railway Department might suffer as the result of our operations will be more than made up by the benefit? to New Zealand which a national air service would bring.” Representing New Zealand Airways, Ltd.. Mr. Ward made application for an Auckland-Invercargill service, and said that the company had been operating continuously and successfully for six years. The company’s name showed how long ago the managing director had visualised the national air service for which application was now made. His client was of the opinion that there was room for one trunk air service only, and that conducted with moderately-sized aircraft. The com-

pany had some larger machines ready for shipment to N.ew Zealand. Sir Stephen Allen : The machines are not British? Mr. Ward :If machines made in Canada are British, yes. They were ordered on the understanding that they should be landed duty free, which was the privilege of British aircraft. Mr. H. M. Mackay, managing director of New Zealand Airways, reviewed the operations of his company since its incorporation in June, 1928.. There was room for one trunk line only, and feeder services were not likely to become important for some years, he said. In Commission in Two Months. He proposed to use two machines on the service, with one machine in reserve. He could have the machines in commission in eight weeks. Cross-examined by Mr. White, he said that Palmerston North-Dunedin was the logical portion of the route on which to begin. Cross-examined by Mr. Withers, Mr. Mackay said that the fleet shown on his statement should be four Boeings (five-seaters) and two Airspeed Envoys (eight-seaters). The four Boeings were the machines ready for shipment. They were single-engined, but the Airspeeds had two engines. If he did not get the licenses applied for he would cease to operate. If he received the national service he would operate it without a subsidy. “If I fail, that’s my pigeon,” Mr. Mackay said.

“I put it to you that it’s everybody’s pigeon.” answered Mr. Withers. “Everybody interested in flying in New Zealand is interested in the proceedings to-day. If you fail it will be a setback to New Zealand aviation that it will take many years to recover from.”

The sitting was adjourned until today.