'Air-cargo Service Essential'

Press, Volume CVI, Issue 31098, 29 June 1966, Page 3

'Air-cargo Service Essential'

(N.Z. Press Association) HAMILTON, June 28. New Zealand was losing money and markets because it had no air-cargo service, said Mr J. R. Day today. He was a member of a committee which, five years ago, made detailed submissions and recommendations to the Government on the possibilities of such a service. “Every year it becomes more imperative for New Zealand to diversify its markets and market development

is. obviously a big factor in an air-cargo business,” said Mr Day. “There are small but extremely lucrative markets in Asia and the Pacific which are impossible to service in any other way because existing services are too expensive or because no services are available. “Investigations have already shown that there is sufficient trade offering in purely market development work to maintain two 30-ton cargo aircraft in continuous and profitable operation to and from New Zealand in the Southwest Pacific area.”

Mr Day said one of the big problems was to convince producers and importers that the transport of goods by air was economic. It had already

been proved that the over-all cost of transporting goods was cheaper by air than other transport methods.

New Zealand had never seen a true air-cargo business in operation, only air-freight, which, by comparison, was like “putting parcels on a passenger bus.” “Our thinking has been clouded by this system—we have never considered what a pure air-cargo undertaking can offer,” he said. “Critics who throw up their hands in horror at the mention of the word *air-freight’ don’t take all factors into account.

“We have proved that markets can be built up by placing cargo in passenger aircraft—now we must take the next step in acquiring aircraft capable of carrying a 50-ton

payload for pure market development.

“Later, when markets are fully established, bigger aircraft can be used for a continuous maximum supply line.” The air-cargo business must be New Zealand-controlled, to allow some measure of flexibility in the transport and distribution of the country’s produce overseas. There should be initial Government participation, especially during the formative years of market development Mr Day also sees an aircargo undertaking as a “painless method of providing the country with defence needs. “There is an obvious and significant military tie-up,” he said. "The cargo aircraft would provide an immediate means of transporting a tactical force overseas.”