EAST COAST AIRWAYS

Evening Post, Volume CXX, Issue 134, 3 December 1935, Page 12

EAST COAST AIRWAYS

FIRST BALANCE-SHEET

LOSS OF £786 SHOWN

A loss1 of £786 for rthe first year is shown in the first balance-sheet of the East .Coast Airways, Limited. The reports points out, however, that the company's service was not inaugurated until April 16 with the result that the summer traffic was lost. Included in expenses is £562 for improvements to the Gisborne aerodrome, the condition of which, it is stated, is largely responsible for the loss on operations. In addition, liberal provision has been made for depreciation on aircraft, £1146 being set aside for this purpose. The capital of the company, £ 15,000, has been fully subscribed, Preliminary expenses amounted to only £ 1471; and other outstanding items are £8837 for aircraft (now written down to £7692), £775.f0r spare engine, £562 for aerodrome improvements, and £689 for insurance premiums paid in advance. A sum of £600 is on fixed deposit and there is £1129 in the current account at the bank, giving the company a reasonable fund for future operations.

The revenue, amounting to £4421, was almost entirely accounted for by fares, freights, and joy rides, states the "New Zealand Herald". Against this, expenditure amounted to £5027, of which £1282 was for salaries and wages, £662 for benzine and oil, £642 for insurances, £242 for booking charges, £186 for advertising, £167 for taxi charges,'and £150 for travelling expenses.

The report states that the services have been operating for only six and a half months, and that, in spite of exceptionally wet and stormy weather, the aeroplanes carried over 2000 passengers, running 974.per cent, of the scheduled trips—a most satisfactory performance under the circumstances. The loss for the year was largely due to the unsatisfactory condition of the Gisborne aerodrome, the runways of which have a rough surface and are of insufficient length. The result is that the-company has been compelled to limit the number of passengers. It is hoped before next winter the work of improving the landing ground will be well forward.