TRUNK AIR SERVICES

Evening Post, Volume CXIX, Issue 86, 11 April 1935, Page 10

TRUNK AIR SERVICES

LICENCES FOR UNION & GREAT PACIFIC

RONGOTAI AERODROME UNSUITABLE

On the ground that the trunk air service proposed by the Union Company was primarily a mail service, and was out of direct touch with half the population, the Transport Co-ordination Board, in a decision delivered today, granted licences for trunk air services both to Union Airways of New Zealand (the Union S.S. Co.), and Great" Pacific Airways (N.Z.), Ltd. (Mr. T. S. Withers). The application of ,a third company, New Zealand Airways, Ltd., was refused. The opinion was expressed that any one of the three applications might be considered by itself to fill the requirements for an aircraft" service licence, and the board stated that it was of opinion that to permit more than one service over the whole route at the present time would involve wasteful competition. They believed that all the applicants agreed that one through service over the main route was enough, at any rate to start with. In regard to the application of New Zealand Airways, Ltd., the board said that it was not satisfied with the financial ability of the company to carry on the service, though that statement must not be assumed as a reflection on the solvency of the applicant company. In dealing with the applications of the other two companies, the board stated that it would have preferred the two rival applicants to have joined forces, and with that end in view the parties were brought together for negotiations, which were not successful. The board expressed the opinion that some service -beyond that which was proposed by the-Union Company w.as desirable, as except by feeder services, it was out of direct touch with half the population of the country, and particularly the two largest centres. •Its aim was primarily to be a mail service, and the main service must be one that could fly from Auckland as far south as possible. As a service only from Palmerston North to Christchurch or Dunedin, the Union Company's proposal was a valuable one, and there was no objection to a licence being issued to it for that particular route — in addition to the main licence which must go elsewhere—thus both passengers and mails being adequately provided for. The board, therefore, intended to grant a licence to Great Pacific Airways upon its incorporation, the precise terms of the licence to be stated later. The service would, in the first place, be on the route proposed by the applicant, from Auckland-New Plymouth-Wangamu'-Palmerston North-Wellington-Blenheim-Christchurch-Timaru-and Dunedin. The board stated that under the circumstances it might be that Palmerston North would be sufficiently provided for by the Union Company without being made a calling place for Great Pacific Airways. That could be settled later. The report, also commented drastically on the Rorigotai Aerodrome, Wellington, and stated that until a ground was available remote from the dangerous climatic conditions which prevailed at Wellington '(Paekakariki was, mentioned) a regular call could not be made at Wellington.

The text of the board's decision is as follows:— ' '

The applications have been made for licences for what may be termed 'the "trunk" air services are among the most important matters which have come before the Transport Co-ordinatiQn Board. The board began the ' hearing of these applications in February, and continued it in March, and besides the evidence called on behalf of the various applicants the board has listened to representations by many local authorities, and other bodies who have desired to place their views before the board. ' The board itself also has called exrl'ert witnesses with regard' to weather and flying conditions to be expected on any main route, and has collected information as to the condition of aerodromes and various other matters related-to the provision and carrying on,of air ser>

vices,

Four applications for a trunk air service licence were originally made to the board, but two of these were amalgamated before the board com menced the hearing, and; the board was left finally with three applications to consider, from—

1. The Union Steam Ship Company of New Zealand, Ltd., on behalf of a company to be incorporated and to be termed Union Airways of New Zealand.

2. Mr. T. S. Withers, on behalf of a, company to be incorporated and to be termed Great Pacific Airways (N.Z.), Ltd.

3. New Zealand Airways, Ltd. ■> PROPOSALS OUTLINED.

The' proppsals of these three applicants are as follows:—;

1. The Union Ste^am Ship 'Company desires to commence a daily service between Palmerston North and Dunedin, via Christchurch. It could bring the service into operation by the end of September, and would be willing, if required by the board, at the end of six months, to extend the service to Auckland, -via New Plymouth. The machines toybe used are not specified, but a time-table is provided. The financial proposals are satisfactory.

some experience in dealing with. They are very general in character, and we need not dwell upon them further/at this stage, except to say that in our opinion any one of the three applications may be considered by itself to fill the requirements of these, clauses. We are, however, of the opinion that to permit more .than one such service over the whole route, at the present time, would involve ■wasteful competition, and would cause such loss to competitors as would eventually result in deterioration of the services concerned. In a venture having such potentialities for danger, it is of great importance the person or company carrying it out should not be invited to take risks to, beat a competitor,* or to restrict some expenditure' desirable for safety. In fact, many reasons present themselves to us for deciding that one through service over the main route is enough, at any rate, to start with. With this view we believe-all three applicants.agree. It has been suggested that the main route might be divided between competitors, and that/each should fly over one portion of it, but this does not appeal to us. We ■; think it better to have unity of control over the whole route. , "

As to clause (c), the aircraft and ground organisation of any large service must be of some value, but in assessing that value we must, rely mainly on the advice of the Controller of Civil Aviation and other, officers of the Defence Department.

ONE ELIMINATED.

| We have decided, therefore, with regard to all three applicants, but with some hesitation as to one of them, to take into consideration the matters referred to in sub-section (2). Some of the clauses in this sub-section are of a very general nature, but a consideration of clause (d), "The financial ability of the applicant to carry on the proposed service, and the likelihood of his carrying it on satisfactorily,", causes us to eliminate one of the applicants—New Zealand Airways/Ltd. We have some do.ubt'sih. any case whether we should have considered this applicant further having regard'" to clause (c) of sub-sec-tion (1), because the Controller of Civil Aviation says the machines proposed to be used be regarded as of any great value from ' a defence point of view." Disregarding this point for the moment, we are not satisfied with the financial ability of the cojnpany to carry on the service. We must not be assumed to reflect on the solvency of the applicant company, or on its efficiency in carrying on the business which it conducts at present, but to carry on a complete trunk service large reserves of capital are essential as well as funds for the immediate' purpose of buying and equipping aeroplanes. A company undertaking the air service over a long, route must be prepared to meet losses and unforseen expenditure; and every precaution must be taken to prevent financial difficulties which might be.reflected in mechanical unsoundness of the operator's fleet. , In addition, we are not satisfied under clause (i) of the sub-section with the type of aircraft proposed to be used. They are single-engined machines, which the Controller of Civil Aviation condemns, as "obsolescent," and which he states are ■ "being discarded" from American air routes;

2. Mr. T. S. Withers proposes to start with a daily service between Auckland, and Dunedin, via New Plymouth, Wa^ nganui, Palmerston North, Wellington, Blenheim, Christchurch, and Timaru. He would consider an extension to Ihvercargill later. He could start by the ehd of the year." The machines are provisionally specified, and a timetable is provided. The financial proposals are satisfactory in some respects. •43. New Zealand Airways, Ltd., proposes to run' a service extending ultimately between Auckland and Invercargill.with subsidiary routes. It regards Palmerston North-Dunedin as "the most logical route on which to commence operations," but its intention would be to run- the entire service proposed as soon as possible. The machines specified are Boeing 40 H4 'machines, which are of the singleengine type, but across Cook Strait, if the board desired, twin-engined machines would be used of a type to be selected. Time-tables were supplied. The financial proposals of the company were explained to the board in, camera. The company has-, already four Hermes Spartan machines; which could be used on feeder services. '

HOPES FOB SUBSIDY,

Each applicant expressed the hope of obtaining a subsidy for its 'service, although no. application was made to depend on the receipt of one; and the board made it clear that such'a question was outside its province, and that any service applied for must be carried on, if approved, independently of any subsidy. \ The provisions which the board must take into account in the licensing of air services are set but in the Transport Licensing (Commercial Aircraft Services)' Act, 1934, section 8., Subsection (1) sets out general considerations to be taken into account, and if satisfied as to these the board must consider more specific questions set out in sub-section (2). Sub-section (1) reads as follows:— /

The board considers the best and most modem machines should be procured, that these should be of British manufacture, and that over the main route single-engined machines ought not to be used.

In considering any application for an aircraft service' licence the board shall generally have regard to— (a) The extent to which the proposed service is necessary or desirable in the public interest; and (b) The needs of New Zealand or the district dr districts as a whole proposed to be served, in relation to transport, whether by air, land, or water; and .• ■ . i

(c) The value of the proposed service arid the aircraft and ground organisation thereof for auxiliary defence or other purposes in case of national or local emergency.

We pass on to consider the applications of the Union' Steam Ship Company and of' Mr. Withers. . !

PALMERSTON TO DUNEDIN.

ONLY ONE SERVICE.

Clauses (a) and (b) are on similar lines to the corresponding clauses in section 36 of the Transport Licensing Act,. 1931, which the board has had

The main difference between these applications is that the former intends in the first place to fly between Palmerston North and Dunedin only, and to extend its service later. If the service commenced in October, the company would be ready to take the section between Auckland and Palmerston North, if required by the board, not less than six months later—that is to say not before April, 1936. The latter would be able to commence its service, according to Mr. Neilson, in December. It would therefore probably be later in beginning its service, but earlier over the northern part of the route. A further important point is, that the first applicant would omit Wellington from its route, while the latter'would include it. The first service, might use different machines over the northern section; its definite idea is to take the mails from Palmerston North—where mail routes from the north, east, and west of the North Island now' converge and convey them to the South Island, and vice versa. To suit the mail Wvice at Palmerston North, the times'bf arrival and departure at that place nfied to be such as makes it difficult to fit in any extension of the service to Auckland; that part of the route might have to be run on an in-

dependent time-table, and with different machines, and''there are evident difficulties over the connection, though these difficulties are not entirely insuperable.

AGITATION NOT UNDERSTOOD.

While taking evidence with regard to these applications we were inundated with witnesses and representatives of local authorities and public bodies in the Auckland and Taranaki districts and Wellington City, who all desired more . extended service than that which the Union Steam Ship Company proposed in the first place to run. We are rather at a loss to understand much of the agitation of these witnesses, because there does not seem a very material difference, so far as Auckland and Taranaki are concerned, whether the service starts about December as proposed by Mr. Withers or about April, 1936, under the Union SteamShip Company's proposals. The permanent exclusion from a long-dis-tance'service of so large a part of the population of New Zealand as resides in the northern and western areas of the North Island would be absurd, but it seems to us that the question whether such a service should begin in December or April is not a point of supreme' importance. The provision an/i equipment of aerodromes for large passenger machines must not be overlooked, and even if licences are granted it is by no means certain that all aerodromes on the longest route can be ready on the dates suggested by either applicant. Much work . has to be done, before the service can be commenced. None of the aerodromes in New Zealand, except the one at Christchurch, are of the "A" class yet, and only three (two of which neither applicant intends to use) are of "B" class yet, and the single "A" class ground is for defence purposes, and is therefore not permanently; available for civil aviation. Work on some aerodromes is progressing, however, and by the. time services are ready to start it is believed several will be sufficiently advanced for use. The evidence of local authorities and public bodies entirely disregarded the condition of aerodromes, except to indicate the perfection of Kongotai, but we venture to say it is a question on which the witnesses should not remain apathetic, because though licences may be granted the actual flying to any point, cannot begin before the landing ground has a real margin of safety in all weathers for the machines to be used. As to the routf to be followed, these witnesses were all in favour of the long route, but with one exception no thought had been given to the exact course to be followed and only one of these witnesses was able to indicate the places at which calls1 should be made. The one1 exception • was the Hon. r J. McLeod; to whose evidence we attach weight and ■ who has long been connected with aviation in New Zealand. Mr. McLeod thought the route should be Auckland-New Ply-mouth-Palmerston North-Christchurch-Dunedin. He would eliminate Wellington, where he does nbt consider flying conditions are possible for the trunk service at present.

CARRIAGE OF MAILS. There is little toy choose between the applicants under several of the headings of sub-section (2), but we must refer to question of the-carriage of mails. The view of the Post, Office is that the service intended to be provided between Palmerston North-Christchurch-Dunedin by the Union Steam Ship Company is the only one that interests them. The Post' Office maintains that letters are usually written during the day,'and posted at the end of business hours in the, afternoon. For such letters, the existing mail service between Auckland and Wellington and between Wellington and Christchurch is all that can be desired; because the letters between these places are posted in the evening and arrive' at their destination by the following morning. Letters posted in Auckland for. the South ' Island, or those from the South Island for Auckland, will reach their destination quickep by air between Palmerston North and Christchurch, and transhipment to or from the train at Palmerston North, than by keeping the letters overnight at Auckland or Christchurch as the case may be, and then taking them the whole distance by air. A simple analysis of the times of arrival and departure will demonstrate the soundness of this conclusion. As to passengers, however, quite different considerations apply,, and if a passenger desires to make his journey as quickly, as possible, his transit w;ill- be much more rapid by air; and the long distance flight is therefore preferable. All the .evidence at our disposal agrees that night-fly-ing is still not possible in New Zealand with any safety.. While still discussing the question of mails,, we ought to note the possible future importance of New Plymouth as a mail centre, if it becomes the landing point of a transTasman service. •

NEW ZEALAND CONTROL. v

While it* is a matter not specifically mentioned in the Act, we are convinced that the control of any company undertaking a trunk service wi#iin New Zealand ought to remain in New Zealand. ■ . .;

We should have preferred the two rival applicants to have joined forces, and so have established a strong company to carry on the service. With this end in view, we brought the parties together for negotiations which unfortunately were riot successful, and it seems impossible for more to be done in this direction. ..-

Taking all the above factors into consideration, we have come to the conclusion that some service beyond that which is proposed by the Union Steam Ship Company is desirable. It is true their service could be extended at a later date, and it is likely also that whatever applicant is granted a licence the entire 'service! cannot be commenced from outset. We feel, however, that the Union Steam Ship Company's proposal, in its initiaj stages, is ■ not quite, sufficient, because except by feeder services it is out of direct touch with half the population of the country and particularly the two . largest centres. Its aim is primarily, to be a mail service, and many difficulties are involved in its future extension. The main service must be one that can fly from Auckland as far south as possible. Treated as a service only" from Palmerston North to Christchurcti or Dunedin, the Union Steam' Ship Company's proposal is a valuable one, and we see no objection to a licence being issued to it for this particular route— in addition to the main licence-which must go elsewhere —and thus both passengers and mails will be adequately provided for.

BRITISH MACHINES

We propose therefore to grant a licence to Mr. Withers's intended company, upon its incorporation, the precise terms of the licence to be stated later. Mr. Withers must satisfy the board that the control of his company is in New Zealand. The machines to be used must be of British manufacture and of a type to be approved by the board. The service will in the first place be on,the route proposed by the applicant from Auckland/ New Plymouth, Wanganui, Palmerston North, Wellington, Blenheim, Christchurch, Timaru, Dunedin, but subject to. the remarks hereinafter made. The company must be . incorporated and in a position to receive a licence at a date which the board will fix after discussion with Mr. Withers; and the date of commencement of the service and, other incidental points will then be-arranged.

The Union Steam Ship Company, if

it so desires, may have a licence on similar terms for^the route Palmerston North-Christchurch-Dunedin.

It may be that under these circumstances Palmerston North will be sufficiently provided*for by the Union Steam Ship Company without being made a calling place for the Great Pacific This can be settled later.

STATE OF AERODROMES

The state of the aerodromes on each route is an important factor affecting all the applications before us. It may happen J;hat services licensed by us will be'ready to operate before the landing grounds proposed to be used are fit fpr the purpose. We have asked for a report, to be furnished to us on the state of these grounds, and when' it is ready we shall be in a position to say which grounds can be used at once. An inter-departmental committee is at work on the matter, and the information collected by it will be of great value and will guide us in allowing or refusing the use of any ground. Until we know any aerodrome is in a safe and proper condition its use will not be permitted and the licence will not include it. .

KONGOTAI CRITICISED.

We desire to refer to the special case of Wellington as regards any flying service in which it is an intermediate port of call. Subject to the report of the Committee mentioned above, which may, result in some modification of its views, the board feels it is incumbent upon it to make special provisions having regard to the difficulty and danger of making calls at Wellington, due mainly to climatic reasons. The same consideration ' does not apply to an equal extent to the short distance flights already licensed between Wellington and Blenheim and between Wellington and Nelson, because on them the weather conditions in Wellington can be more easily forecasted when the flight begins. For the long distance flights, further precautions must be taken. Evidence given by experts, and not contradicted, shows that on at least 10 per cent, of the flying days a landing at and departure from Wellington could not be made according to timetable, and that on at least five-per cent, of such days a landing or departure could not be made at all. The Hon. J. McLeod also was of opinion that .Wellington must be omitted, at present. We are fully aware of the importance of ; Wellington as the capital city aftd the focal point of all business interests in the Dominion, but we cannot take the responsibility of allowing Wellington to be a regular port of call under present conditions. The personal safety of travellers is involved, and in view of the distance from other landing grounds, we , feel it would be wrong for us to allow pilots to take the risl^ of landing at Wellington without certain restrictions. We realise the importance of this decision, but we realise also our duty in the matter. With passengers for Wellington on board, or with passengers to pick up, the temptation would, be strong to, land under dangerous conditions. The aerodrome at Rongotai may be as good as some witnesses say, or it may be capable of improvement, but in addition to it (or in substitution for it) there must be a landing ground provided at some other place more remote from the dangerous climatic conditions which prevail in Wellington. Such a ground should be sought and prepared for the service. We are informed that Porirua would probably not be satisfactory, but it may be possible to obtain one at Paekakariki. Until such a ground is available, at least for emergency landings, we cannot allow a regular call at Wellington. When the compsny is formed, we may be able to frame suitable provisions to covor the case meanwhile. We re!fer to the* fact that even at Croydon where all the -iatest appliances are in use, it appears it is frequently impossible to land and an emergency ground is used. ■■ ■ -'/'I

AMENDED APPLICATION.

Finally we mention again the third applicant, New Zealand Airways, Ltd. This company has already done some flying, especially in the south, and ( , is entitled to consideration ,in other directions. It applied for a licence to cover certain auxiliary routes, as well as for the main service, and for a licence for a taxi-service also. . We adjourn the application as regards these other routes and the taxi service, to enable the company to lodge an amended application for: any service that may now be open for it.