Qantas Given Tasman Rights In T.E.A.L. Deal

Press, Volume C, Issue 29499, 28 April 1961, Page 14

Qantas Given Tasman Rights In T.E.A.L. Deal

(New Zealand Press Association) WELLINGTON, April 27. New Zealand has purchased Australia’s share in Tasman Empire Airways for £NZBII,4OO, the par value of the shares. The sale is effective retrospectively to April 1 last, but Australia has agreed that New Zealand need not Complete the whole payment before March 31, 1965. Australia and New Zealand will soon ment in the interests of New rnnrln/l* a fnnnal air aarvire a CTree m ent Zealand.

conclnde a formal air service agreement giving Qantas the right to fly to and through Auckland, Wellington and Christchurch and T.E.A.L. the right to fly to and through Sydney, Melbourne, Brisbane and Norfolk Island. The Minister of Civil Aviation (Mr Me Alpine) said tonight that an essential part of the whole agreement was that the airlines would co-operate and would not attempt “to run each other out* of the air.” T.E.A.L. will be entitled to carry substantially more than half of the traffic of the two airlines on the Tasman and between New Zealand and Fiji. “This will give • T.E.AJ* a firm financial base from which to develop its services in the area of primary New Zealand interest—the South Pacific,” said Mr McAlpine. Arrangements have been made to ensure that, in its early years, the new TJS.A.L. will be in no less sound a financial position than the old T.E.A.L. was and that it will develop in “friendly co-operation” with Qantas.

“I cannot go into any more detail on these arrangements because the details are for confidential business discussions between the airlines, but I can asSlire you that they will provide a competitive stimulus and an excellent service to the public whilst safeguarding T.E.A.L.'s financial position.” said Mr McAlpine. “These arrangements are naturally dependent on the New Zealand airline remaining in New Zealand ownership. "Australia and New Zealand have been partners in joint ownership of T.E.A.L. for over 20 years,” said Mr McAlpine. “It has been a happy and successful partnership and New Zealand has gained much from it. It has enabled New Zealand to develop in international civil aviation, to gain experience and to build up an airline. “I want to say a very sincere ‘thank you’ to Australia for its support throughout this long period. "Joint ownership was the right arrangement when the Tasman air traffic would barely support one airline. But times have changed. New Zealand is moving into the jet age and with the completion of Mangere airport about the end of 1964, there will be big changes. “The traffic on the Tasman is reaching the point where it will support operations by Qantas, as well as by T.E.A.L., and is increasing very fast. Service to U.S. “Moreover, New Zealand must be free to plan extended services to Honolulu, the United States and other places as our trade, tourist and other interests may require.

“We shall need to negotiate for traffic rights in other countries and we are at a disadvantage if we own only half an airline. It is a very different picture from that of a few years ago.

“To seize the opportunities that will open to New Zealand, we must be on our toes in aviation. And we are more likely to be so if we have full responsibility for T.E.A.L. and for its develop-

“At the same time, close co-operation with Australia is obviously the sensible course for New Zealand in aviation, as in so many other fields.

“The Australian and New Zealand Governments are both convinced that, in these circumstances, New Zealand must have its own airline, but we have also agreed—in a formal binding agreement —that we shall continue to ‘maintain a high degree of co-operation.’ This, therefore, is not a parting of the ways.” Mr McAlpine said that the conclusion of this agreement with Australia only solved the first of the problems of the immediate future. Jets and Mangere W’hether T.E.A.L. expanded its route network or not, a fleet of pure jet aircraft would have to be earmarked fairly soon for use when Mangere was ready. Fortunately, this was for the airline to finance, not the taxpayer, although the Government were bound to be concerned with the choice of an aircraft. Expansion would not be pushed on recklessly—it must be justified by traffic prospects. There were big possibilities in air freight. There was the prospect of Pacific and Tasman services by 8.0.A.C. in the next few years and 8.0.A.C.’s offer to lease the latest jet aircraft to T.E.A.L. for the Pacific run.

“T.E.A.L. is already the specialist in aviation in the South Pacific and the Government will give it every encouragement to become even more pre-eminent in providing travel service within this area where New Zealand occupies a special place and has many direct interests.” said Mr McAlpine. “We shall need, of course, to negotiate agreements with three other countries at least —the United Kingdom, France and the United States. Fortunately there are good reasons to expect satisfactory arrangements, not only with the United Kingdom, but also with the French and the Americans. "I know the French Government appreciates that, for many years, T.E.A.L. provided Tahiti with its only air services—at great cost to T.E.A.L. —and now that traffic through Tahiti is 'developing I am sure we will be able to secure rights to and through Tahiti. Reciprocal Agreements

“We have, in fact, reached the basis of an agreement with France.

“We attach great importance to expanding our present agreement with the United States to provide satisfactorily for future air services and I do not expect any difficulties there. “We are buying a sound enterprise in T.E.A.L.," said Mr McAlpine. “The staff, most of whom are New Zealanders, have given efficient and loyal service to the public and to the Australian and New Zealand Governments The airline has maintained a high standard of service with an outstanding safety record. Its reputation is high, and it is making profits.