H.—4OA

The operations of this company provide a nucleus for services covering all the eastern districts of the North Island, connecting with trunk services, when commenced, at Auckland and Palmerston North or Wellington. The following table shows the number of passengers carried, and other details : —

(c) Cook Strait Airways, Ltd.—This company was granted a license in February, 1935, for a service between Wellington, Blenheim, and Nelson, with the right to run to Hokitika as required. The service commenced on 30th December, 1935, with 2 D.H. 89 " Dragon Six " machines, with accommodation for six passengers each. The company holds a license also for an air-taxi service. The company's regular service connects with Union Airways at Blenheim, where Wellington passengers can leave or join the latter service. Fares were provisionally fixed in December, 1935, but that provision has now lapsed, and in accordance with the wishes of the Minister the Board has not heard a further application from the company to fix its fares, and accordingly the company at present is free to charge what it thinks fit. In the light of evidence now available, it appears that the provisional fares of 255. between Wellington and Blenheim were too low. The following table shows the company's results since it started flying:—

(d) Union Airways of N.Z., Ltd. —This company was granted a license for the route Palmerston North - Blenheim - Christchurch - Dunedin, and commenced operations on 16th January, 1936, on the following time-table : — South. North. Depart Palmerston North .. 8.30 a.m. | Depart Dunedin .. .. 11.30 a.m. Arrive Blenheim .. .. 9.27 a.m. j Arrive Christchurch .. .. 1.02 p.m. Arrive Christchurch .. .. 10.55 a.m. | Arrive Blenheim .. .. 2.30 p.m. Arrive Dunedin .. .. 12.37 p.m. J Arrive Palmerston North .. 3.37 p.m. Up to 31st March, 1936, the company's planes had flown 71,575 miles, carrying 1,211 passengers, 8611b. goods, and 1,0551b. mail (from 16th March). The company works with three D.H. express air-liners (D.H. 86) carrying from ten to twelve passengers each, and has also a Miles-Falcon with accommodation for two passengers. An unfortunate accident at Rongotai aerodrome resulted in the death of Squadron Leader McGregor, the company's chief pilot, and extensive damage to the MilesFalcon machine, which is now temporarily out of commission. An application for an airtaxi license was made by the company in February, 1936, but at the request of the Minister the application has not been heard. The company's operations give a connection between the North Island at Palmerston North and the chief centres of the South Island,

6

i Mileage. Passengers. Goods. Mail. Lb. Lb. Period ended 30th June, 1935 .. .. .. 26,167 754 ., 98 Quarter ended 30th September, 1935 .. .. 34,300 849 31st December, 1935 .. .. 38,576 1,172 101 Total .. .. .. .. .. 99,043 2,775 101 98 Quarter ended 31st March, 1936 .. .. .. 30,320 1,033 • 146 Total .. .. .. .. .. 129,363 3,808 247* 98* * For period 1st October, 1935, to 31st March, 1936.

I Period. i Mileage. Passengers. Goods. Mails. Lb. Lb. December .. .. .. .. .. 1,125 55 82 January ........ February .. .. .. .. )■ 56,875 3,001 3,899 March .. .. .. .. .. J 710* Total .. .. .. .. .. 58,000 3,056 3,981 710 * 16th~31st March, 1936, only.