AIR SERVICES

Evening Post, Volume CXIX, Issue 33, 8 February 1935, Page 5

AIR SERVICES

THE TRUNK ROUTES

CASE FOR NATIONAL COMPANY

During the hearing of applications for air transport licences by the Transport Co-ordination Board, Mr. T. S. Withers outlined his proposal for the formation of a national company. He stressed the fact that the board was far more than a mere Coordination Board, and that it completely controlled the future of civil and commercial aviation in New Zealand. The board was bound, he submitted, to have regard to certain vital issues of public policy to which he proposed to refer. .

Mr. Withers stated that his company would have associated with it, in the event of its securing the licence, the organisation of the late Flight-Lieuten-ant Ulm and also Mr. E. T. Fiske, of Sydney, chairman of directors of Pacific Airways. The whole of the company's finances would be assured, and it would have the technical services of Sir Charles Kingsford .Smith and other well-known aviators. Mr. Withers stressed the fact that his organisation would also have the benefit of the intensive researches recently made by Flight-Lieutenant Ulm in Great Britain and the United States relative to commercial air services in New Zealand. "We have completed the vast amount of research essential to the inauguration of these services," he stated.1 "All other applicants are in the \ position of only now preparing to do so."

Mr. Withers stated that his company proposed to operate British ■ machines. If a licence were granted the services should be in operation by December. Pending the arrivalin New Zealand of Flight-Lieutenant Ulm's reports,1 he was unable to say definitely whether an initial subsidy would be considered necessary, but if it was shown beyond all doubt that a subsidy was essential,, the Government would be requested to reconsider this matter. MONOPOLY OF TEANSPOET. Dealing,with the application by the Union. Steam Ship Company, Mr. Withers stated that he desired to place certain vital issues before the board. Assuming that the board found itself faced with the necessity of. deciding the award of the one licence available between the Union Company and his own company, these issues must be of extreme ' importance to the whole Dominion. *I submit," said Mr. Withers, "that in every respect we are as much, or more, entitled to this licence as the Union Company. But if the board should consider that our claims are equal, it must ask itself the question as to whether it would be in the public interest to award this licence to the-Union Company. The Union Company," through its shipping services, holds a monopoly of passenger traffic between the North and South Islands. It now proposes to obtain a similar monopoly- of air transport. Air services and steamer services over a common route are, arid always must be, competitive,'; he added. His company would have no diversity of interests and was being brought into being for the sole, purpose of operating an efficient national air service in New Zealand.