This blog started off by focussing on NZ's smaller 3rd level airlines, past and present. It has evolved to trying to present some record of NZ's domestic airline operations and some of the larger charter operators, interesting NZ international airliner movements and photos I have taken around the country. Comments, corrections or contributions are welcome, Steve - westland831@gmail.com
19 March 2024
New Career Pathway
17 March 2024
Saturday Plane Spotting
LATAM Boeing 787-9 Dreamliner CC-BGL |
Air New Zealand ATR 72-600 ZK-MVI |
Air New Zealand Boeing 787-9 Dreamliner ZK-NZL |
Air New Zealand Boeing 787-9 Dreamliner ZK-NZQ |
The family arriving, Air New Zealand Airbus 320 ZK-OJS |
Air New Zealand Boeing 777-300 ZK-OKM |
Air New Zealand Boeing 777-300 ZK-OKN |
Air New Zealand Boeing 777-300 ZK-OKR |
Barrier Air Cessna 208 Grand Caravan ZK-SDD |
And the Aussie registered jets... Jetstar Airbus 320 VH-VFP |
Tasman Cargo Airlines' Boeing 767-300 VH-XQU |
12 March 2024
Now doing Flight Training
11 March 2024
Closer to Service
The ex-Rex Air Saab arrived into Auckland from Wagga Wagga and Sydney on the 4th of July 2023 as VH-EKD before being placed on the New Zealand civil aircraft register as ZK-CIT on the 7th of July 2023.
10 March 2024
Skybus - Trying to Fly through a Legal Loophole
Despite never actually flying a revenue
earning service Skybus was one of New Zealand’s most ambitious post-War airline
proposals as it attempted to find a way of competing with the national carrier. It was an innovative idea but from the beginning it was plagued with problems. Its battle to get airborne is a story of not trying to fly through a legal loophole.
On the 6th of October 1980 it was announced that within 11 weeks Skybus would be operating domestic scheduled air services in New Zealand between Auckland, Wellington, Christchurch Dunedin and Palmerston North using three McDonnell Douglas DC-8-53 and one McDonnell Douglas DC-9-32. Fares, it was announced, were to be between two-thirds and three-quarters of those charged by Air New Zealand. Also announced were feeder services from 17 provincial centres as well as an international charter service.
Fronting the operation were three men who had been involved in the failed Nationwide Air, the “car ferry” operation which had operated ATL Carvairs. Newspaper coverage described Matt Thompson as an Auckland businessman, John Rutherford, as a Christchurch barrister and solicitor, and Mr Murray Purchase, as an Auckland-based transport consultant, who had been marketing manager for Nationwide Air. Also joining them was John Yates, who was an Auckland businessman and publisher.
Murray Purchase, Matt Thompson and John Yates with a model of a DC-8 in Skybus colours. Source : Nelson Evening Mail, 7 October 1980 |
Skybus looked to the example of Denver Ports of Call which was a private airline which operated flights for the Denver-based Ports of Call Travel Club from 1967 to 1992. It was the largest travel club in the United States, with at one time over 66,000 members. Skybus director Matt Rutherford cited Ports of Call as having made a $2.98 million profit the previous year and that Skybus was based on this enterprise to some degree.
The key to airline’s concept was the intention for Skybus to operate as an "aero club" within air services licensing legislation. Under section 14 of the Air Services Licensing Act, aero clubs could operate aircraft without a licence, provided the aircraft was owned or leased by them, and the only people carried were club members. The airline stated that As all Skybus passengers would be aero club members, the airline says it can legally carry them without a licence. The second basic cornerstone to the Skybus concept was that everyone had to be a member of an aero club. The airline said it could start operations once it had 20,000 paid-up members.
This loophole in the air services licensing legislation meant Skybus did not need to appear before the Air Services Licensing Authority to gain a licence. To ensure this the Aqua Avia Society was formed to operate under the Industrial and Provident Society Act. People who became members of the Aqua Avia Society would automatically would also become members of an aero club which did not have to adhere to the regular licensing requirements of other air service operators. Skybus argued that society members would be able to fly in aircraft owned or hired by the society. The society was set up so there were no proprietary shareholders and all benefits were retained by the society for all members. Prospective members were able to join the Society for five years for $75 or a life membership for $150. Membership was to be limited to 80,000.
So what did this mean for the travelling public? Matt Thompson told the Press that Skybus air fares to all foundation life members will be one-third less than the current air fare being charged for the equivalent flight by the State-owned airline. Term members will be eligible for a 25 per cent reduction. This was later qualified by Mr Thompson when asked what would happen if the "State-owned airline" embarked on a price war. He said the pledge could not be a "complete all-time pledge” but would have to come within sensible business practice. Social benefits offered by the society included free air travel for all life members aged 75 or more, and half-fare travel for all life members over, the age of 65. Student and apprentice members would be accorded a half-fare standby, and in the instance of a family of whom all were members, the first would be eligible for the normal discount rate and the second adult and subsequent immediate family members - up to a limit of six - would fly at half fare. Mr Thompson said also that membership of the society would result in a 20 per cent reduction on rental car hire and that negotiations were under way to achieve discounts for members with an as yet unspecified hotel chain.
The aircraft, he said, would be obtained on a five-year lease. Ordinary line maintenance would be done at Christchurch, major work at Hong Kong. Pilots and aircrew would be New Zealanders and the venture would create about 315 new jobs in the aviation industry in New Zealand. The service on the main trunk would not be a stripped-out, “bring-your-own-lunch” one, he said. Morning flights would provide a continental breakfast, brunch flights would provide an open sandwich with coffee, tea, or even wine if a licence was approved, and evening flights would provide hot savouries with coffee, tea or wine. Seating would be in two classes on the DC8 aircraft — 130 economy seats, which would be eligible for the lower fares, and 16 first-class seats, which would cost about the same as the Air New Zealand fare. The DC9, in which all seats would be economy class, would service Dunedin and Palmerston North as well as Christchurch and Wellington. A proposed timetable for the initial main trunk service had been drawn up. Under it, there would be six flights in and six flights out of Christchurch each day heading to Wellington, Auckland, or Palmerston North, and one flight each day in and out of Christchurch for Dunedin.
Once the feeder services were begun, these would connect with the main trunk airports and it was envisaged that eventually there would be a service from the four main centres to Kaitaia, Whangarei, Hamilton, Tauranga, New Plymouth, Gisborne, Napier and/or Hastings, Wanganui, Palmerston North, Masterton, Blenheim, Nelson, Westport, Greymouth, Timaru, Oamaru, and Invercargill. The Greymouth Evening Star reported that the proposed timetable for Greymouth-Blenheim-Wellington is:- Depart 7.15am, 11.50am, 4.45pm. Arrive from Wellington 10.20am, 3:10pm and 8.10pm. All the flights would link with other main centre routes and other provincial services.
Reservations would be made by a toll-free dialling system into a main computer, which would write tickets automatically and confirm reservation by telex. The society also intends to run overseas charter flights, and has held discussions with English operator, Mr Freddie Laker, with a "favourable reaction" but no commitments, according to Mr Thompson. He indicated that the airline would look at connecting with cheap Laker North American-European flights. Other newspaper coverage talked about charter flights to overseas destinations such as Australia, Hong Kong, Fiji, Hawaii and North America and associated discounts on car rentals and hotel accommodation.
- What discussions Mr Thompson had had with the Royal New Zealand Aero Club and what agreement had been reached?
- Which affiliated clubs had expressed an interest in into the scheme?
- Where the three DC8s and one DC9 aircraft were coming from, and an assurance for the travelling public that the aircraft would be maintained and serviced to the same standards that Air New Zealand regarded as normal?
- Where pilots to fly the aircraft were to come from, and what the provisions for refuelling and ground facilities were to be?
The Royal New Zealand Aero Club, the overseeing body of the nation's aero clubs, and whose aero club members were exempt from air services licensing provisions, was also not convinced by the scheme. In September 1979 it had rejected an application for associate membership from the Aqua Avia Society. The RNZAC outlined its position in various newspapers, stating that it would have "grave reservations" about the proposal if it appeared to place the objects of aero clubs in danger. These objects were to train pilots, many of whom went on to commercial flying, and only people carried are club to foster the sport of aero club flying... The intention of the exemption for clubs was not to permit scheduled main-line carriage of 140-odd passengers at a time, and the Government might amend the legislation rapidly if it appears that the loophole would stand up in court.
Air New Zealand's chief executive, Morrie Davis, was reported in the Nelson Evening Mail as saying that he would not comment on the proposals until after the Government and aero clubs have had their say.
On the 8th of October 1980 more details appeared in the Press… The aircraft would be leased, and. there were options with Air Canada for one DC8 and Philippine Airlines for two DC8s. Negotiations were in train with a European operator for a DC9, Mr Thompson said. Working capital would be based on membership of an estimated 20,000 subscribers. The aircraft would be serviced at Christchurch, where a hangar was already available, and main frame and main checks would be done at Hong Kong, Fuel was readily available, Mr Thompson said, and he was negotiating with several oil companies. Flight service would be high. The company would employ 75 cabin staff - meals would be served - and 50 pilots. "Of the 350 staff required, I am confident that most will be New Zealanders” Mr Thompson said.
The Royal New Zealand Aero Club - which represents most New Zealand aero clubs - rejected an application by Aqua Avia for associate membership status in 1979, but a senior officer of one of New Zealand’s biggest aero clubs said in Auckland yesterday that the aviation industry needed somebody like Mr Thompson to “ginger up” Air New Zealand and the Ministry of Transport. However, although the Canterbury Aero Club is sympathetic, it seems unlikely that the new venture will gain the club’s following. “The club does not want to be used by commercial interests,” said the president, Mr G. Berryman.
Further concerns were reported on the 11th, including from pilots who were not impressed with the Skybus proposal. The President of the Airline Pilots' Association (Captain D. G, McAllister), said the aircraft Skybus planned to use, DC8s, did not have a good fuel efficiency record. "In fact, they are about the worst example available,” he said. He said they would use twice as much fuel as a Boeing 737 and carry only 10 per cent more passengers. It was acceptable to use them as Air New Zealand did, at peak times, but not all the time. Captain McAllister believed that the only way the airline would work would be on a shoe-string budget. There was no room for that type of business in New Zealand. He did not think Air New Zealand pilots would be queueing for jobs with the new airline.
The Nelson Evening Mail reported on how the airline was to be promoted on the 13th of October. National organisers of Skybus promotion have launched a New Zealand wide membership drive with promises of high income for six weeks for successful recruiters. The sales technique seems to be based on a pyramid system with one regional organiser responsible for a handful of sub-organisers who in turn engage eight more commission sellers. Membership subscriptions in the Skybus company, Aqua Avia Society Ltd cost $150 for life or $75 for five years. Commission for the front-line sellers ranges from $4 an enrolment to $10, depending on the number of enrolments. Sub-organisers in provincial areas have been told to anticipate at least $3000 commission for the six weeks.
The initial advertisement, published in newspapers including the Evening Mail yesterday, offers successful commission sellers high incomes during the six weeks of the promotion. But sub-organisers in Nelson were complaining today they didn't have enough information to tell people. While many people have indicated genuine interest in supporting the Skybus concept of cheap air travel, no one has yet fronted up with cash, they said. The sub-organisers, contacted through advertised telephone numbers in Nelson, declined to be named. Two sub-organisers spoken to said there was to be a meeting tonight where it was hoped more information would be forthcoming.
One question was how people would get their full refunds - once commissions had been paid - if the scheme failed to get off the ground… The Nelson sub-organisers said there was apparently going to be some link with third-level airlines to get Skybus members to the main centre services. "The membership drive is supposed to be backed up with extensive advertising," said one sub-organiser. "There is talk about linking with Freddie Laker to give cheap, world-wide flights. Nobody's selling in Nelson - it's all wait and see. I’m not very happy at present and if I don't get answers tonight I'll pull out."
The Dominion, 18 October 1980 |
A closer look at the proposed timetable |
Within three weeks 500 to 600 people had joined the Aqua Avia Society and, more importantly, agreements and been reached with the Hauraki and Piako aero clubs. The Air Services Licensing Act stipulated that licence exemptions apply only to aero clubs affiliated to the RNZAC and which carry their own members in their own or hired aircraft. On the 29th of October the Press reported director John Rutherford saying the Hauraki Aero Club’s decision meant Skybus could now get off the ground. He said that the Skybus promoters were still anxious to get a number of other aero clubs to join the scheme, however. Skybus could exist with just one club. “We can now lease aircraft in the Hauraki club's name and get them to operate throughout the country.”
In response the Royal New Zealand Aero Club said member clubs which contracted with the Aqua Avia Society would be suspended from RNZAC membership immediately. On the 30th Mr M. Bettjeman, president of the RNZAC, was reported in the Press saying that the RNZAC’s executive had doubts about the viability of the project. “In view of our concern to protect member aero clubs who may not be aware of all the relevant factors, this executive has unanimously resolved that any clubs who contract with Aqua Avia Society will be immediately suspended from membership of the RNZAC” An RNZAC statement said that since October 6, when the Skybus project had been unveiled, the RNZAC had not received any detailed information about the operational and financial viability of the venture in spite of repeated requests to Messrs M. Thompson and J. G. Rutherford, two of the Skybus directors. “The absence of such information reinforces our doubts as to the viability of the scheme," it said. “We are also conscious of those member clubs which suffered financial losses as a result of the operations of Nationwide Air and its associates in which Messrs Thompson and Rutherford were involved.”
The statement said that inherent in the scheme was a member aero club’s contracting with the Aqua Avia Society to use the exemption under section 14 of the Air Services Licensing Act which obviated the need for an air service licence. According to the RNZAC the effects of this on member aero clubs are:
- Section 14 requires that members of Aqua Avia must also have full rights of membership of the contracting aero club. The consequence of this would mean that control of the aero club would be taken from existing membership.
- The same section provides that the club would be responsible to own or hire the aircraft in this case large jets, and therefore a contracting club would be legally responsible for the debts incurred.
- The purpose of the sections is to allow the traditional functions of the aero clubs and, in particular, the carriage of its own members. If member clubs lost this exemption it would be catastrophic to their activities.
In spite of the RNZAC move, the Aqua Avia Society, acting or "legal advice” decided to press on with its plans. Mr Rutherford said the RNZAC had no authority to interfere in the "internal housekeeping” of its members. He believed that members could be expelled only for ceasing to offer flight training or for ceasing to pay dues. If the RNZAC acted outside its constitution it could expose itself to “substantial claims.” Legal action might be necessary to stop the RNZAC from expelling any members although it was hoped to settle the matter by negotiation. The Hauraki and Piako clubs had indicated since the RNZAC announcement that they would “stand by” the project. Four or five other clubs had also been approached and these had all expressed concern that the RNZAC executive should have acted in such a high-handed manner without consulting member clubs.
On the same day, in a separate article in the Press, it was reported that the Hauraki Aero Club has withdrawn from its agreement with the Aqua Avia Society. On Tuesday, the club agreed to give the society membership - and thus the means to avoid obtaining a commercial operator's licence. However, the move provoked its parent body, the Royal New Zealand Aero Club, to issue a threat of suspension if the agreement was not invalidated… The secretary of the Hauraki Aero Club, Mr Graeme Wood, said that the club had sent the RNZAC a telegram saying it would withdraw from its agreement. "We did not want anything to go wrong," said Mr Wood. "Our actions in going in could jeopardise member clubs' activities." He thought that other aero clubs throughout the country could be affected if the Government took action to alter in some way section 14 of the Air Service Licence Act, which allowed the clubs to carry passengers.
More clouds were looming for Skybus. On the 31st it was reported that the Consumers’ Institute had described joining the Aqua Avia Society as a “high-risk” investment.
On the same day it was reported that the Skybus scheme was being investigated by the Securities Commission. The commission’s chairman, Mr C. I. Patterson, said yesterday that he was not satisfied that the mechanics of the Skybus proposal were being satisfactorily explained to the public. After studying advertisements and a pamphlet including a coupon to be filled in by prospective members, he was “not happy about it, by any means.” Mr Patterson said that the constitution of the Skybus scheme was unusual in that it was constituted under the Industrial and Provident Societies’ Act, which did not contain the safeguards of the Companies Act relating to the making of offers to the public. The society had not explained its proposed methods of financing or whether members could be called on to meet any liabilities. The society was also misleading the public in asserting that it was running an airline. That could be lawfully established only by the acquisition of an air-service licence. “And I take it that the society does not intend to apply for one.”
While the Hauraki Aero Club pulled out of the Skybus scheme the Piako Aero Club remained defiant supporting it and subsequently had their membership of the Royal New Zealand Aero Club suspended. The Aqua Avia Society went to the High Court seeking an injunction restraining the RNZAC from taking any disciplinary action against any of its member aero clubs who wished to negotiate or enter into any contractual agreements with the Aqua Avia Society. The Society also placed before the courts a claim for $2.3 million in damages against the RNZAC. If it was prevented from attracting as many members by “unwarranted interference” in its contract arrangements it would stand to lose about $2.3 million.
A Piako Aero Club representative told Aviation News that members felt the RNZAC had acted a little prematurely in the matter and gave the impression of trying to sweep the Skybus concept under the carpet. At the same time members had been very impressed with the forthright and open way Aqua Avia's directors had dealt with them and all decisions made by the Aero Club to date had been based solely on the presentations put forward. "Meantime things have quietened down and we are carrying on as normal," he said.
On the 3rd of November it was decided by Cabinet that the Government would not tighten the law to stop the Skybus scheme. A change of the law, or, more probably, a new regulation passed by an Order-in-Council, could have been used to prevent the Aqua-Avia Society from using the legal nicety on which it bases its proposal for a new airline. The following day the Press suggested the rejection was hardly startling given the Government’s stand on competition and support for private enterprise. But the decision makes it apparent that the Government now believes the venture will fail of its own accord without the political embarrassment of having to say “no” and being seen as the stumbling block. The Government certainly is uneasy about the proposal and for several reasons... The Prime Minister (Mr Muldoon), said after Cabinet meeting that the Government was concerned about the Skybus proposal but felt that the best way to express, that concern was to give the public the maximum amount of information rather than to legislate. “There was a suggestion that we could stop this thing by a regulation which would 'slightly' alter the regulations that apply to aero clubs,” he said. “On balance we decided that it was not appropriate for the Government to step in and take such action at the moment. We do believe that there are certain aspects of this thing that should be brought to the notice of prospective investors, certain aspects of their liabilities.” Mr Muldoon said that the Government would encourage a ‘‘buyer beware” attitude.
Responding to the statement, Mr Thompson invited the Securities Commission to suggest changes. "None of our rules are onerous; Indeed, when the registrar (of industrial and provident societies) approved the rules, he paid particular attention to those provisions, and considered them fair when approving them. It must be apparent that we have been at lengths to say Skybus is a commercial venture and, in the event of anything untoward happening, the funds belong to the membership, not the directors as has been implied." Mr Thompson said all clubs had provisions to levy members. Golf and sports clubs always had this power. If members did not like it, they could resign or force a special meeting to change the rules. All members received a copy of the rules when they joined. He believed the Ministers and the commission chairman had not construed the rules in the correct manner. Aqua Avia members would control the society at all times, and would elect the directors. At that time, the "Post" asked Skybus director Mr John Rutherford to explain the references to annual subscriptions and levies. Mr Rutherford's reply was that "annual subscriptions" was included to cover the possibility of future one-year memberships, which Skybus does not have at present. "Levies" would be charged only to people making international flights with Skybus, he said. He said that to get around aviation regulations in other countries, Skybus might have to fly as a "private flight." To do this it would not charge a fare. It would levy members instead, and give them a flight in return. It would then tell the foreign country involved that the passengers on board were not fare-paying travellers. Only those travelling would be levied, according to Mr Rutherford.
The more people looked at the Aqua Avia/Skybus proposal the more questions were asked and concerns raised. On the 5th of November the Minister of Transport (Mr McLachlan), the Minister of Justice, (Mr McLay) and the chairman of the Securities Commission (Mr C. I. Patterson) issued a joint statement claiming the promoters of Skybus have said nothing in general publicity material about imposing a passenger levy to cover costs and borrowing… This information was on the Aqua Avia Society file held by the Registrar of Industrial and Provident Societies, but was not mentioned in any of the publicity material or application forms seen by them. For this reason it was in the public interest that a joint statement was made on the matter which went on to detail concerns about particular rules and member’s potential liabilities.
Responding to the statement, Mr Thompson invited the Securities Commission to suggest changes. "None of our rules are onerous; Indeed, when the registrar (of industrial and provident societies) approved the rules, he paid particular attention to those provisions, and considered them fair when approving them. "It must be apparent that we have been at lengths to say Skybus is a commercial venture and, in the event of anything untoward happening, the funds belong to the membership, not the directors as has been implied." Mr Thompson said all clubs had provisions to levy members. Golf and sports clubs always had this power. If members did not like it, they could resign or force a special meeting to change the rules. All members received a copy of the rules when they joined. He believed the Ministers and the com-mission chairman had not construed the rules in the correct manner. Aqua Avia members would control the society at all times, and would elect the directors. At that time, the "Post" asked Skybus direc-tor Mr John Rutherford to explain the references to annual subscriptions and levies. Mr Rutherford's reply was that "annual subscriptions" was included to cover the possibility of future one-year memberships, which Skybus does not have at present. "Levies" would be charged only to people making international flights with Skybus, he said. He said that to get around aviation regulations in other countries, Skybus might have to fly as a "private flight." To do this it would not charge a fare. It would levy members instead, and give them a flight in return. It would then tell the foreign country involved that the passengers on board were not fare-paying travellers. Only those travelling would be levied, according to Mr Rutherford.
On the 7th of November Mr Justice Speight's decision on Aqua Avia's claim against the RNZAC's suspension was announced. He said, the crux of the matter was a provision in Section 14 of the Air Services Licensing Act 1951. That section exempted clubs that were affiliated with the Royal New Zealand Aero Club from obtaining an air service licence to carry passengers providing the aircraft belonged to the club and the passengers were members. It was clear that the plaintiff company (Aqua Avia Society Ltd) had been formed for the purpose of people joining and becoming members of an affiliated aero club, he said. If there was a loophole in the law that could be legally used, then it should not be interfered with merely because its development met with the disapproval of others in aviation. The judge said it was probable that the prime anxiety of the Royal New Zealand Aero Club was that the evasion of the air licensing regulations might imperil the more orthodox use of that section by member aero clubs. That danger had been removed in the meantime, according to public declarations by the Prime Minister that there was no intention of cancelling the availability of the Section 14 exemption, he said. Another prime concern seemed to be an apprehension, that might be justified in due course, that the venture would be ill-fated and might bring individual aero clubs into disrepute or financial disadvantage. However, there was still sufficient freedom that if the Piako Aero Club wanted to enter the venture it should be able to. The judge said it was only speculation, rather than proven, that the scheme would be detrimental to amateur aviation.
On the 10th of November the Press reported on Skybus' connection with Guiness Peat Aviation Ltd. The Irish company will operate the airline initially until New Zealanders have enough expertise to take over. But the Aqua Avia Society Ltd, which is behind Skybus, has first to come up with the $1,000,000 deposit to start the operation and the first of the aircraft rolling. The marketing vice-president of Guinness Peat Aviation, Mr William McCormack, said in Auckland this week: "What has staggered us is the slow response (from people wanting to join the society). "We know it is a brilliant idea which has to work." The society backing had to come through subscriptions, he said. He did not know exactly how much the society had in hand but it was a "good way towards" the $1,000,000 deposit on the first aircraft. The society hoped to come up with the deposit within 30 days and his company could have an aircraft operating within 30 days of getting that deposit.
The following day the Press reported that Skybus could be flying by Christmas. The Skybus scheme’s first flight may take off from Britain by Christmas, bringing members of the Aqua Avia Society to New Zealand with the society’s first aircraft. Plans for a flight to Australia have stalled as Australian civil aviation authorities consider the society’s application for landing rights. The society was looking for members in Britain on the same basis and at the same membership rates that it had advertised in New Zealand, Mr Rutherford said. At least as many members were sought to fill the aircraft - about 160 passengers - but more would obviously be welcome, he said. The plan would involve flying the aircraft - a DC8-53 - to New Zealand and flying New Zealanders to Britain after it arrived here. Company director John Rutherford said the Australian leg could be included in the final flight plan if the landing rights were granted in time.
On the 13th of November Aqua Avia director and Christchurch lawyer John Rutherford met with the Securities Commission and was presented with a memorandum detailing areas of concern. John Rutherford agreed the society's rules needed amendment to meet the points in the memorandum which included, the apparent ability of the society's board of directors to fix its own and employees' remuneration without limitation, make future levies on members for unspecified amounts at unspecified times and make levies on a discriminatory basis as the directors thought fit. The commission said there appeared to be no limitation upon the directors' borrowing power, or power to enter into commitments on the society's behalf. It also appeared past members of the society would remain liable for debts incurred while they were members.
At the end of November Matt Thompson headed overseas completing plans for incoming overseas flights. In a statement before his departure he indicated that 2600 people had signed up as members of the Aqua Avia Society and that discussions with car rental companies, trade union groups, hotel chains and others were expected to bring bulk membership to well over 8000 by Christmas. "Considering all that has been thrown at us in an attempt to keep us grounded the membership figures are excellent," Mr Thompson said. He added that impetus in sales was now obvious and there was no doubt Skybus would fly — all over the world.
- The sole licensing authority related to the operation of international scheduled services was the Minister of Civil Aviation. According to the International Air Services Licensing Act, 1947, the Minister can refuse a licence if the proposal is not "desirable in the public interest,” if the financial ability of the applicant to continue the service is in doubt, if the proposed fares and charges are unsuitable, and if the safe, orderly and. economic development of international air services in New Zealand might be affected. An all-encompassing provision allows the Minister to include any other such matters as he thinks fit.
- The Civil Aviation Regulations of 1953 required a permit to cover international chartered services. This contains only one provision - a broad one. The Minister may impose any conditions he thinks fit. The Ministry of Transport does not yet know whether Aqua Avia plans scheduled or chartered international services.
- Tariff approvals have to be issued under the International Air Tariff Regulations, 1978, for chartered and scheduled international services. Under these regulations, the Secretary of Transport must have regard to “the public interest,” satisfactory economic operation of international air transport, any relevant international conventions, agreements or arrangements which might bear upon fares, and that all-encompassing criterion again - “any other matter he considers relevant.”
- The document “External Civil Aviation Policy of New Zealand”, published in December 1979, specified the role of the national carrier and provided for Government decisions in the event of conflicts of interest. The document says all applications from additional carriers will be judged in terms of the policy’s goals, one of these being the development of a network of air services in New Zealand’s economic interests. To meet these goals New Zealand should have a State-owned international airline, provided that it operated competitively. An efficient airline would save and earn foreign exchange. The operations of a State-owned international carrier could be guided. Given that Skybus would under-cut Air New Zealand and bite into its patronage, affecting its competitiveness and ability to earn overseas exchange, it could be expected that Skybus applications of various kinds would be disallowed on policy grounds.
- An Air Services Certificate was required, for both domestic and international operations. Issued by the Director of Civil Aviation, it ensures Skybus operates up to safety standards. The chief controller, Air Services Policy, Mr J. C. Kennedy-Good, says no other statutory consents are required for Skybus’s domestic service. However, the Minister of Energy must approve any application from the airline, as a new user, for a fuel allocation. If Aqua Avia plans to store fuel in New Zealand it will also have to approach port authorities, or oil companies, or local authorities for consents. Mr Kennedy-Good wondered at storage capacity, recalling New Zealand’s inability during a Pan Am fuel crisis, to berth a relief tanker to help with refuelling problems on the New Zealand leg. Aqua Avia would also have to make arrangements with airport authorities for space at terminals and use of handling equipment. He said that Skybus would not qualify for the fuel refund granted to licensed operators. At 6c a litre this would probably save the society $1m a year on its proposed services. It was this lack of fuel refund that the directors of Skybus - who were also behind the failed airline Nationwide - claimed caused the collapse of Nationwide. Mr Kennedy-Good said aviation authorities in America, Tahiti and Britain would have to grant approvals to Skybus operations. As an innovative venture, it might not gain the semi-automatic approval granted to charter flights.
A few days later the Securities Commission announced that they were still not satisfied with the Aqua Avia Society’s revision of its constitution and this brought a further flurry of newspaper coverage. Meanwhile, Skybus’ plan to have a meeting with all interested parties was called off when only the New Zealand Airline Pilots' Association and the Piako Aero Club accepted the invitation to attend. Those who declined the invitation included the Prime Minister, the Minister of Tourism, the chief executive of Air New Zealand and departmental heads of Transport, Treasury and the Securities Commission.
On the 16th of December the Press reported Matt Thompson saying that Skybus had a firm arrangement with the United States operator, Evergreen International Airlines, to provide the aircraft for the first charters between the United Kingdom and New Zealand.” The first charter, he said, would begin on February 1.
Evening Post, 8 July 1981 |
Skybus' Vickers Viscount in British registration at Brisbane, Australia, in September 1981. Photographer unknown |
Skybus' Vickers Viscount ZK-SKY at Auckland in late 1981. Photographer unknown |
The Skybus Vickers Viscount G-AOHT prior to its delivery to New Zealand at Charles de Gaulle Airport, Paris, in May 1979. Photo : J Mounce Collection |
Evening Post, 3 November 1981 |
A closer look at the proposed Viscount schedule |
The Dominion, 21 November 1981 |
Another photo of Skybus Vickers Viscount ZK-SKY at Auckland in late 1981. Photo : J Mounce Collection |
The Skybus Viscount ZK-SKY at Wellington on 21 November 1981. Photo : Evening Post |
On the way to Indonesia... ZK-SKY at Brisbane in December 1981. Photo : J Mounce Collection |
After its time with Skybus, a couple of photos of Vickers Viscount G-AOHT... with Euroair at Luqa, Malta, in November 1984 |
After its time with Skybus, a couple of photos of Vickers Viscount G-AOHT... with Virgin at Gatwick, London, in May 1985 |