AIR COMPANY’S LOSS

Poverty Bay Herald, Volume LXIII, Issue 19123, 18 September 1936, Page 7

AIR COMPANY’S LOSS

REFUSAL OF LICENSE PETITION TO PARLIAMENT A FAVOURABLE REPORT (Parliamentary Reporter.) WELLINGTON, this day. A recommendation that New Zealand Airways, Limited, be either granted compensation or allowed to operate trunk air routes was made to the House of Representatives by the Public Petitions Committee when reporting on the petition of the company asking for compensation for alleged unfair treatment in connection with the issue of licenses to operate air services in the Dominion.

The report, which was adopted without- debate, contained the following clauses:—

(1) That the petitioners rendered unique service to New Zealand in developing airmindedness. • (2) They carried on this service, recognising that in the initial stages of aviation they would be faced with financial loss.

(3) That the petitioners reasonably anticipated that such loss would be compensated by profits when the service became firmly established.

(4) The petitioners’ application to the Transport Co-ordination Board as the air licensing authority was in order and was duly considered by the board.

(5) The board apparently laid down two conditions as at least desirable, if not essential, namely, that the machines to be used should be of British manufacture and that New Zealand capital should be used. (6) The petitioners complied with both conditions, the Boeing machines proposed to be used being of Canadian manufacture, and the company giving an undertaking that it could and would raise the necessary finance in New Zealand.

(7) That the board gave the necessary licenses for the main services to companies which did not propose to use New Zealand capital. (8) That in one case the board promised to issue a license to a company not then in existence, -which has, in fact, never come into being. (9) The petitioners, in being refused any.worthwhile license, tvere thereby placed in such a position that they could riot recoup themselves for their outlay and the loss sustained ,in developmental work. (10) Having regard to the foregoing and the voluminous evidence placed before it, the committee recommends the petition to the Government for most favourable consideration, with a view to some adequate substantial compensation or the granting of trunk air routes.