INTERSTATE AIRLINES

Otago Daily Times, Issue 26027, 15 December 1945, Page 7

INTERSTATE AIRLINES

PRIVATE OPERATION POSSIBLE CLAUSE IN ACT INVAUD (Rec. 10.55 p.m.) SYDNEY, Dec. 14. The Australian National Airlines Act of 1945 will not empower the Federal Government to prevent private companies from running inter-State air services. This was made clear in a judgment delivered in the High Court to-day in the case in which the validity of the legislation was challenged. The five judges were unanimous in over-ruling demurrers entered by the Commonwealth claiming that the legislation was valid. The Chief Justice, Sir John Latham, said: “The result of the judgment is that the court decides unanimously that the Australian Airlines Act is valid except in so far as it would prevent the issue of an airline licence to anyone except the Australian National Airlines Commission for an interstate service between the same stopping places as a service of the commission, or would bring to an end exist-

ing airline licences of that kind. To that extent the court decides that the provisions of the Act are invalid. “The court also decided that the amendment made iri the Air Navigation Regulations purporting to give unqualified discretion to grant or refuse an airline licence is invalid.” The High Court judgment followed an action against the Commonwealth by three companies operating interstate lines and routes between States and Federal territories challenging the validity of the Act on the ground that it infringed freedom of trade and commerce as defined by the Constitution.