BETTER AIR SERVICES

Grey River Argus, 24 November 1944, Page 5

BETTER AIR SERVICES

FOR AUSTRALIA BIG MODERN FLEET OF PLANES. [Aust. & N.Z. Press Association] (Rec. 7.50) CANBERRA, Nov. 23. At least thirty modern American transport planes are now being sought by the Australian Air Minister, Senator Drakeford, who is at present in the United States, to enable the Government to start the nationalised Australian Inter-State air services with expanded facilities. The Government plants to have its services operating not later than next June. This was officially stated to-day. estimate the value of the tangible The advisers to the Government assets of the existing airline companies, such as planes, hangars, tools and equipment, at about three million pounds. However, in assessing the compensation to be paid to the companies, the question of the outlay in which companies had been involved in building up goodwill and airmindedness in the pubilc will be considered. The Commonwealth .has retained the ownership of twelve Douglas machines, which recently have been allotted to Australia by the United States authorities. These planes, are now being operated by private companies. They were obtained by the latter on a basis of lease, which was agreed to by the Treasury ano the companies concerned. A Government spokesman claimed to-day, that, beyond a number of hangars, repair shops and booking offices, the Australian airlin companies own only what planes they are using, while the Government already owns the aerodromes, the navigational .aids and the general airfields equipment. In the Federal Parliament next week a Bill will probably be introduced to implement the plan of the Commonwealth Government to take over and operate the air lines between the States of Australia. The plan to take over Australia's internal airlines was formulated at a Cabinet meeting on November 11, after consultations with the Prime Minister (iMr. Curtin) but the decision was kept secret, not only from the Opposition, but also from the rank and file members of the Labour caucus. After yesterday’s announcement by the Acting-Prime Minister, (Mr. Forde), the Minister for Aircraft Production (Senator Cameron) said the Government also planneci to produce its own transport aircraft to operate the nationalised airlines. However, details of the proposed Australian-made airliners had not yet been considered because the aircraft industry would b e . concentrated for sime time on the production of war planes. A spokesman has announced that efforts are being made to secure the services of th e ■ Managing-Director ot Qantas Airways (Mr. Hudson Fysh) 'as chief of the new statutory authority which will control Australia’s internal airlines. Mr. Fysh is abroad at present and the Government has not received- any indication, whether he will accept the .position. At the referendum held eight years ago the Federal Government failed to secure control of aviation, but, subsequently, all States individually gave the Commonwealth certain aviation powers. Givernment legal authorities are understood to have advised that if one of the States withdrew the powers it granted to the Commonwealth then the Commonwealth could cut that State off from all inter-State. aviation.

Debate in Parliament OPPOSITION TO PLAN FROM AIR LINE COMPANIES (Rec. 11.45) CANBERRA 1 , Nov. 23. The Leader of the Opposition, Mr R. G. Menzies, iq the House of Representatives to-day, moved the adjournment of the. House to discuss the Government’s plans for purchasing and operating the airlines between the Australian States. He said: “The Federal Goverment’s decision to take over Australian airlines is arrant political confiscation. At this time, when the Government should be building up the strength of private business, so as to restore it for its task as a major factor in reconstruction, this important announcement is made. It will clearly be followed by others to the extent they appear to lie within , the Governments’s constitutional powers—banking, insurance ’ and inter-State shipping. Confidence and security will be weakened.: Willingness to invest in individual enterprise will be checked, and in consequence the capacity to employ will be impaired.” In renly, the Deputy Prime Minister, Rt. Hon. F. M. Forde, said:— “This decision to take over interstate airlines has been a unanimous decision of the full Cabinet. The Government has made its decision on the merits of the case, and outside of the realm of party Mr Forde said he believed that the decision was in the interest of the nation. The Commonwealth Government decision to take over all inter-State airlines and operate them permanently is provoking a storm of protests, the airline companies having announced a determination to challenge the Government’s constitutional authority in the High CourtThe companies rest their case on five main clauses —efficiency, iniative, safety, adherence to time-tables, and low fares and freight rates. It is claimed that the low air mail rate in Australia is the lowest in the world and that passenger fares average 3.2 d a mile compared with sid a mile in the/ United States. One Australian company,, it is stated, had applied to the Government for a license to operate a land plane service across the Tasman from Sydney to Auckland for a fare of £l7. The fare charged by Tasman Empire Airways, a Government-controlled company whose capital is shared by the Governments of Great Britain, Australia and Nev/ Zealand is £3O. Some legal authorities hold the view that this year’s referendum vote against Government control of industry may place the air control plan outside the constitution. The Sydney “Herald" has. an additional leader “A Socialist Bombshell.” It says: “The proposed action even if it is within the legal competence of the Government is clearly contrary to the spirit of the recent referendum vote; The sadly backward conditions of Australian railways presents a poor advertisement for Socialistic control, while recollections of the Commonwealth s venture into ownership and operatiin of ships after the last war will inspire anything but confidence in Government which proposes ,SUCh a course in the transport xield. »

Deadlock Still at CHICAGO AIR CONFERENCE. BRITISH ATTITUDE CRITICISED. (Rec 11.0) NEW YORK. Nov. 23. An appeal to the delegates to reach a complete agreement on post-war commercial ayiation and to end the Anglo-American deadlock, was made to-day. at the Chicago Air Conference hv the Acting-Leader of the Canadian Delegation. Mr H. J. Symington. He tlid the world expected more from this conference. The world was tired

and hopeless. It expected a ray of hope in international association. The New Zealand delegate, Hon. D G Sullivan; Senator Drakeford (Australia), and the Mayor of New York, Mr La Guardia, spoke on similar lines. , x j The agreement, as it stands at present, leaves unsolved several vital problems, including what freedoms of the air the various nations shall grant to foreign airlines 1 , and the question of whether the traffic shall be divided by quotas and by the number of trips or be left to Jhe free play, of competitive efficiency. The U.S. Associated Press says: As a result of to-day’o session, it has appeared that a new effort will be made to bring Britain, and America together on the disputed points. Mr Berle (U.S.A.), and Lord Swinton (Britain) said both were pleased ito stay in Chicago until Christmas if there appeared to be any; hope of reaching an agreement. The New York Times learns that reports sent to the Governments, of Canada, Australia, New Zealand, and South Africa have expressed dissatisfaction with the British stand.

BRITISH SHIPPING COYS TO RUN AIR LINE TO ARGENTINE (Rec. 11.0) LONDON, Nov 23 Five British shipping companies, with a capital backing of twenty millions sterling have formed a company, British-Latin-American Airlines Limited, to . provide after the war a two hundred miles an hour luxury air service between Britain and South America. The route will be from "Lisbon, West Africa, Rio De Janeiro and Buenos Aires. lhe actual’flying time to Rio De Janiero is estimated to be about thirty hours. The fares’will <be- slightly higher than the sea rates.' Before the war the latter cost was single £65; return, £ll6. The iompanies starting service are th e Booth Steamsnip Comnany, the Royal Mail Linos, the Blue Star Line, the Pacific Steam Navigation Company and also the Lamport and Holt Company.