H—4OA,

would require. On the 26th September, 1935, a conference of all persons concerned was called by the Board, including Aero Clubs and all holders of air-taxi licenses and route licenses. The conference was attended by representatives of every club, person, and company to whom a license had been granted, or agreed to be granted (except one), and a unanimous decision was arrived at prescribing the scope of air-taxi licenses. The Board approved of this decision, to which it gave immediate effect. The decision, which remains in force until Ist October, 1936, enables an air-taxi license-holder to fly between any two licensed aerodromes with the following condition as to fares :— Minimum fares — £ s. d. One passenger . . .. 30 0 per hundred miles. Two passengers . . . . 310 0 „ Three passengers .. .. 315 0 ~ Four passengers .. ..4 0 0 „ But where the flight takes place between two points served by the same licensed service, the individual fares shall in no case be less than the fare charged by the licensed service, plus 10 per cent. It is believed that this provision gives adequate protection to licensed route services as regards passengers, but when it is renewed further protection should be given also as regards the carriage of mails and goods. 26. The following is a summary of the position of air services so far as regards operators of route licenses : — (a) Air Travel, Limited.—This company commenced operations on 18th December, 1934, under a license granted on 4th December, 1934. In February, 1935, a further license was granted for five years. The company operates a route Inchbonnie - Hokitika - Franz Josef and Fox Glacier, and to Haast and Okuru. One machine was used to start with, and in September, 1935, the Board gave permission to use a second. An air-taxi license was granted in February, 1935. The machines used are : One D.H. Fox Moth four-passenger machine and one D.H. Fox Moth three-passenger machine. The following table gives details of operations, and indicates the growth of the service : —

(b) East Coast Airways. —This was the first company to receive a license. The service commenced on 16th April, 1935, and has been carried on since, with 2 D.H. 84 Dragon machines, having a carrying-capacity of eight persons, inclusive of pilot. The company's aeroplanes fly between Gisborne and Napier, two trips a day each way, but from 18th March, 1936, the service has been suspended, pending alterations to the Gisborne aerodrome. In July, 1935, an air-taxi license was granted to the company. In July, 1935, the company applied for licenses to fly over the following routes: (1) Napier-Dannevirke; and (2) Napier-Taupo. These applications were adjourned at the request of the company sine die, to be brought on for further consideration at any time on fourteen days' notice. In January, 1936, the company applied for the following route licenses : (1) Gisborne-Opotiki-Tauranga-Auckland ; and (2) Napier - Palmerston North. In accordance with the Minister's request, these applications have not been heard.

5

Period ended Mileage. Passengers. Goods. Mails. i Lb. Lb. 31st March, 1935 .. .. .. .. 31,500 599 2,637 1,841 30th June, 1935 .. .. .. •• 17,433 310 2,221 3,527 30th September, 1935 .. .. .. •• 17,100 208 1,762 4,231 31st December, 1935 .. .. .. •• 24,300 372 4,689 5,190 Total .. .. .. .. •• 90,333 1,489 11,309 14,789 31st March, 1936 .. .. .. .. 28,400 661 2,102 4,620 Total .. .. .. .. •• 118,733 2,150 13,411 19,409