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development of Air Force Stations, Civil Aerodromes, Seaplane alighting areas, Seaplane base at Auckland, and all facilities relating to Air routes, both internal and overseas. In all cases the most efficient and expeditious methods of construction are being adopted and the contracting principle utilized where possible. Local Air Services: Internal Air Transport has continued to expand and consolidate its position. The only new service commencing during the year was Union Airways' extension from Auckland to Gis borne via Tauranga and Opotiki, but the rearrangement of the Auckland-Dunedin main trunk service with a through calling point at Wellington, has materially assisted to build up traffic. This steady growth of traffic and the increased importance of air transport is shown in the following table.

A feature of air service operations has been the regularity and safety that has been achieved by the operating companies, and this shows that the aerodromes and air route facilities are being developed along sound lines. The work on civil aerodrome and landing-grounds at 30th June, 1939, may be summarized as follows : — Fields licensed. . . . .. .. .. .. 59 Emergency fields available .. . . .. 10 New fields initially licensed . . .. .. 6 Fields removed from license register as not required or unsatisfactory . . . . . . . . 1 Major construction work has been in hand during the year on 21 Fields already licensed but under enlargement or improvement 16 New fields under development . . .. . . 16 Available emergency-landing grounds under improvement .. 2 New emergency-landing grounds under development .. 4 Total number of fields on which work was in hand . . 48 Fields maintained as Government emergency-landing grounds or fields in remote localities . . . . .. . . 23 Licensed fields maintained pending banding over to local authorities .. . . . . .. .. 13 A number of new fields may be expected to come into initial use this coming summer, and an extension of trunk air services and feeder services is confidently anticipated. Investigations, surveys, and construction proposals have been undertaken in connection with many other possible aerodrome-sites with a view to their development in the future either as licensed aerodromes to augment the network serving air transport needs or as emergency-landing grounds. My Department has continued to co-operate with the Post and Telegraph Department in the provision of aeradio facilities to assist the safe and efficient operation of internal air lines. Transmitting-stations have now been provided and are operating at fifteen aerodromes, two initially this year. In addition, separate aeradio-receiving and direction-finding stations are being provided at eleven centres. All station buildings have been erected, one station is operating, and the installation of equipment is in train at the remainder. A radio approach beacon has been provided at Taieri, Dunedin, and although not yet in regular use has been operating experimentally.

XXIX

Passengers. Freight. Mail. Length Distance Year ending. Air Lines flown (Miles). (Miles). Number _ Passenger- p ounds Ton -miles. Pounds. Ton-miles. miles. 30th June, 1936 (half 1,108 356,900 10,490 1,117,000 15,590 725 26,300 1,969 year) 30th June, 1937 .. 1,566 857,947 26,617 2,889,600 52,110 2,339 128,250 10,550 30th June, 1938 .. 1,669 1,662,997 58,431 6,394,803 113,192 5,607 248,680 21,551 30th June, 1939 .. 2,015 1,992,159 65,483 7,185,957 224,734 1,034 332,648 30,688