A SMALL LOSS

Evening Post, Volume CXXV, Issue 9, 12 January 1938, Page 10

A SMALL LOSS

EAST COAST AIRWAYS

AERODROME DIFFICULTIES

YEAR'S OPERATIONS

The annual,report of the directors of East Coast Airways records a generally satisfactory year, and though a small loss resulted the prospects for future operations arc sound. Since the last report was issued, state the directors, the service has been in active operation for nearly twelve months. A portion of the year was lost through the Gisborne aerodrome not being serviceable and it was not till December 7, 1936,.that regular service was resumed between Gisborne and Napier. Credit is due to the Public Works Department for the success of the levelling work done at Gisborne. The improved surface has enabled the company to increase the loads carried and trie company looks forward to even better conditions when the proposed extensions to the ground are completed, making the larger area available for use within twelve months. Unfortunately, the report continues, finality has not yet been reached by the Napier authorities in regard to facilities at the Beacons aerodrome, Napier. The ground is an excellent natural aerodrome, but there is no hangar accommodation, and considerable expense has been . incurred through planes having to stand exposed to sun and rain. The depreciation caused is much greater than is realised by the layman'and the directors are seriously considering making a change 'in organisation in Hawke's Bay. Certain ground transport disadvantages would attach to the use of I the Hastings aerodrome, but if suitable hangar accommodation could be arranged this consideration would outweigh any increase in cost of ground transport, as the expenditure resulting from exposure of machines at Napier is very heavy. . During the year emergency landing grounds have been completed at Mohaka and Opoutama and necessary dumps of benzine established for use if required.

EXTENSIONS OF SERVICE,

On October 30 the East Coast service was extended to Palmerston North, making air connections which enable passengers to reach Auckland,

Wellington,

Christchurch,

Dunediri,

and intermediate air transport stopping places comfortably in one day. A similar service from the other centres to Gisborne is also available.

"It is yet early to make any definite pronouncement as to the results of this extension, but to date the public support has been gratifying,": states the report. "Your directors have given consideration to the matter of further extensions of the service, but these cannot be undertaken without additional machines, and at the present time it is impossible to procure the type of machine which we are advised would be needed. The rapidly rising costs of operation is a factor which must be taken into account also in considering further extensions." During the twelve months to October 31, 4264 passengers and a considerable quantity of mail and freight were carried. Services between Gisborne and Napier have been maintained with 99.3 per cent, of regularity, and this, the directors comment, reflects the conscientious and enthusiastic work of pilots and ground staff.

PARTICULAR DIFFICULTIES

Several unfavourable factors combined to make the year more difficult, states the report. The rising costs of goods and services had been felt by the company, the more so because within the period the machines had undergone two complete overhauls in- [ stead of the one required by the regulations. The first major overhauls were undertaken shortly after the planes resumed service last summer and it was then found that the ten months' enforced idleness had resulted in considerable depreciation; overhaul expenses Were high in consequence, and a special overhaul was made during the winter.

There was a deficiency of £2219 for the year, but when allowance was made for the several unfavourable factors the year had not been so unfortunate as the bare figures would make it appear. The enforced idleness had had an adverse effect both directly and indirectly, but the company looked forward to a more settled period of operation in the current year. Steps are now being taken for the installation of wireless equipment in the planes for the greater ease, safety, and regularity of the service.

COMPARATIVE FIGURES

The following figures set out the past calendar year's operations in detail, the second and third columns being interesting in showing the great increase in passenger and mail carriage for December, even allowing for the fact that December of 1936 was not a complete month:— For year ended Her:., Bee. ato 1037. 1937. 31,1936. Passengers .... 5,2.31 829 369 -Mail (lbs) 6,430 1,407 275 Otiicr freight (lbs) 1,314 13S 39 No. of trips ... 1,540 270 104 Percentage of reKularity 99.fi !)9 100 Ton-miles 353 — — Passenger-miles . 501,921 — —