Guinea Airways Reduce Rates And

Announce Larger Profits.

THE balance-sheet of Guinea Airways, Ltd., Which is the senior air transnort comnanv on tbp Kpw r„i noci + dflelds, shows a net profit Of £28,725 tor the year ended February 29, compared with £22,077 in 1930-31.

Quarterly dividends absorbed £16,875. Depreciation allowed on aeroplanes, buildings, etc., is £15,009, as against £8,291 in the previous year.

A transfer of £12,075 to reserve is made the amount comparing with £2,500 a year earlier The increased appropriation brings * the reserve to £20,000, the object being chiefly to provide an adequate insurance fund for r epla cements.

Tlie allocations amount to £2B 950 or £225 more than the profit, and the carry forward is reduced to £145 from £370. The company’s f;. r .°® s xc- V noo e^ iS .f hown at *95,618, compared n *"7,922 previous 12 months. fl X al at 41 i<5 > 000 has been increased by oJvo ,° n tl f Sundry creditors are £4,808 lower at £14,000. Buildings, plant, aeroplanes, etc., are valued at £64,915, or £8,876 less than last year. Sundry debtors are £24,464, an increase of_ £8,527, and cash balances have risen to £20,171 from £155.

The directors’ report stated that a reduction duriug the year in the rate of the quarterly dividend from 2/- to 1/- per share was deemed advisable and. at the same time, various econo mies were effected in administration and oper ating expenditure. Further savings in costs are to be made in the current year to accord with the policy of the Board to render air transport m New Guinea as cheap as the special local conditions will allow. ... .. - Wltl * thls ot) 3 ect in Vlew - a considerable cut 111 freight waa made recently. With careful management, it was hoped that the lower level of charges could be maintained this year with impairing the efficiency or further reducing divide nds. If so, the average freight cost to the public during the five year life of the Com pany will not have exc eeded s*d. per lb.

The Company’s main operation during last year was the carrying in of two dredges for Bulolo Gold Dredging Ltd. Tliis work was com pleted in the allotted time and without mis hap. The Company has contracted for the transport of two additional dredges for Bulolo.

The report stated that during the year all world’s records for air transport of freight were broken. The staff, under the management

of Mr. A. 9. Cross, deserve the highest praise for this achievement.

Reference was made in the report to the death in January of Mr. C. J. Levien, who had been a member of the Board from its incep tion. Mr. Levien, it was stated, was rightly regarded as the founder of aviation in New Guinea and his loss would be severely felt.