AERO CLUBS

Evening Post, Volume CXIX, Issue 30, 5 February 1935, Page 11

AERO CLUBS

COMMERCIAL WORK

LICENCES OPPOSED

AIR TAXI FARES

Unexpected opposition to the "automatic" licences for aero clubs, which were provided for in the Transport Licensing (Commercial Aircraft Ser-! vices) Act, was raised before the Transport Co-ordination Board this morning, and resulted in the granting of the licences being held over. Automatic licences for the nine incorporated aero clubs in New Zealand and for the Manawatu Aero Club and the Melbourne Centenary Air Race Committee were asked for. The licences were for air taxi work, and the clubs quoted minimum flying-hour fares, which were opposed by New Zealand Airways, Ltd.,. on the grounds that they did not provide for depreciation or piloting costs. Evidence to show how the fares were computed was asked for by the board, and .as this was not immediately available the application was adjourned until this afternoon. _ The application was heard by Sir Stephen Allen (chairman) and Messrs. H. B. S. Johnstone and Lisle Alderton. Mr. S. E. Nielson made the application on behalf of the eleven applicants, and Mr. J. P. Ward, of Dunedin, represented New Zealand Airways, Ltd. The reason why the application was being made was that the clubs had purchased machines to train pupils, but the depression had reduced the number of pupils, so the clubs wanted to use the machines commercially, Mr. Nielson said. They were asking for licences'for four years, as it was considered that that period would enable the clubs to write the machines off. The charges agreed upon betweeri the clubs were £2 per hour for one-passen-ger machines, £2 10s per hour for twopassenger machines, and £3 10s for three or four-passenger machines. The machine owned by the Melbourne Centenary Air Race Committee was a large machine", and the fare proposed for it was £6 per hour. \

The Chairman: Is it proposed to make profits for the Air Race Committee?

Mr. Nielson said it was not. The committee was already faced with a heavy loss, and wanted to dispose of the machine as quickly as possible. APPLICATIONS OPPOSED. The applications were opposed by New Zealand Airways, represented by Mr. Ward," who said that his company claimed to have done its fullest to support the aero clubs in the past. The only thing that concerned the, company was the amount of freedom that was to be given to the clubs to operate against, private companies. The clubs claimed protection, but they had re-1 ceived machines through funds reused j by art unions or .by loan from the Government and. did not have to pay their pilots, who received their reward by increased seniority. Mr. Ward contended that it was obvious that commercial companies buying machines and paying their i pilots should be substantially protected against unfair competition. The clubs wanted to write off their machines in four years, and it was not .the intention of the companies to. do that. . . . '. ' ....

The private companies had frequently complained that Government machines lent to the clubs were being used for commercial purposes. If the ■licences were ' granted, would the Government machines be used for private purposes? The clubs required revenue, and if they could not cater for private work they wanted a subsidy. The aero clubs had a saving clause put into the Act to - enable them to use their machines, but his company I wanted Government machines loaned to. clubs for training purposes excluded from the commercial licensing. If the clubs did not .oppose that it would show that they simply wanted to I work off their own machines.

Mr. Ward submitted that some evidence should' be led to show that the fares quoted were sufficient to permit of the machines being fairly operated. The fares of clubs throughput New Zealand varied, and New Zealand Airways claimed that £2 an hour for a single-passenger machine was quite inadequate. What was that fare to cover? he asked. It should cover the initial cost, depreciation, and wages, and the clubs, he contended, didx not have to meet those' charges. The charges were per flying hour, and his company, contended that the fares should be from place to place. The flying distance per hour could vary, and New Zealand Airways wanted the clubs to fly at not less than the private companies. If they were going to fly at £2 an hour private concerns.could not compete with them. Mr. Nielson said that the Act. required the- fixing of minimum fares and charges, but some of the clubs would not be.able to operate down to them. '■'■••' ORIGINAL FARES PROPOSED. The chairman-said that when the clause was, being drafted the clubs had submitted fares. Were those fares the same? • •' Mr. Nielson: I think the fares set out are a little less.

The chairman: If my recollection is right they are substantially less.

Mr. Nielson said the fares would cover flying time both ways, and all commercial flights would be piloted by men receiving substantial salaries. The fares were taken from the Dunedin and Southland Clubs. Those clubs had been operating on that scale for some time and were quite satisfied with it.

The chairman: These fares seem to be low.

Mr. Nielson: ; The Wellington Club's charges are higher than most other clubs; I am not certain why; perhaps they have more expensive machines.

Mr. Ward; The same machines are used. ■■■■■'■ i

The chairman, asked if the clubs could bring evidence to show on what basis the fares were. arrived at. '

: Mr. Nielson said he was not in a position to call expert evidence today. The chairman: -Surely it is a very simple request. It should be easy to get that evidence. '

Mr. Ward said that the aero, clubs should have figures to show their working costs, otherwise it might be called a bluff.

"There is no bluff," Mr. Nielson said. The fares were the minimum. His own club (Western Federated) would not operate under £3 10s an hour, and the Wellington Club would not operate for-£2 an hour.

The. chairman: Should we not fix different minimum fares for different clubs? ■■

Although the clubs were asking for a minimum rate to be fixed, Mr. Nielson said, there was no likelihood of the clubs operating uneconomically. Mr. Ward: It is a well-known fact that the clubs have operated uneconomically.

The chairman said it was quite obvious that the licences would have to be granted, but the question of fares would have to bo settled. The application would be adjourned till the afternoon.