No Loss Shown by Tasman Airways

Chronicle (Levin), 19 January 1948, Page 4

No Loss Shown by Tasman Airways

press Association )

- (Per

WELLINGTON, Jan. 19. s Local criticism of State-owned air enterprises generally, levelled as a result of the recent overseas Press reference to the considerable loss sustained by British Overseas Airways' Corporation, wa's the subject of comment. today by the chairman nf Tnsmari Emriire Airwavs. Sir

Leonard Isitt. It would be unfair, he said, to include Tasman Empire Airways in such criticism, as from its inception the company had ' pr'oved a success, both from an ' operational and financial point of view;. "From its inauguration in 1940, the service has grown from a schedule of one return trip a week to the present schedule of eight return trips a week, and despite the difficulties arising from wartime condition's, the service has been maintained without . interruption and without loss of life or aircraft,". said Sir Leonard. "The present passenger ' fare for travel across ^the Tasman is one of the lowest, if not the lowest, operating for international air travel, and is competitive *with the steamer fare." Though the company in its early stages received a subsidy from the New Zealand, Australian and United Kingdom Governments, but no payment for mail freight, at "present 110 subsidy was paid, continued Sir Leonard, and mMls were carried at an agreed rate, which was aceepted as one of the lowest oper-. ating for international airlines. Since its inception the company had shown a financial surplus, and tiad paid a regular dividend of three peb jient. afteii p^ying^^axa:tioft'^lUtKe same basis- a§" ord'inary commercial concerns. Speaking generally 011 airline operations, Sir Leonard said that it should be borne in mind that it was necessary at tim.es to consider other factors than the mere commercial results. National policy might necessitate the maintenance of air communications with distant outposts and over routes which, view- j ed from a purely' commercial outlook, could not possibly prove profitable except at prohibitive carriage rates.