Aerial Freight Rates

In N. Guinea

Below 3d. Per Pound

THAT the cost of carrying goods by air between the coast of New Guinea and the goldfield is likely to remain under 3d. per pound, was indicated by the chairman of Guinea Airways Ltd. (Mr, C. V. T. Wells) when he addressed the annual meeting of that company in Adelaide on May 31. It has been calculated that freight would cost from 2d to 3d. per pound, if a road were built between the goldfields and the coast, and goods were transported by motor lorries.

“We have been able to maintain our usual dividends,” said Mr. Wells, “and the profit for the year is a little above the annual average for the Company’s seven years of operating. The tonnage transported was very little short of that for the preceding year, but the reduced freight rates, foreshadowed at our previous annual meeting, have naturally had an effect upon gross earnings.

“We are satisfied that this should be

so, to a reasonable extent. Our Company exists for the two-fold purpose of supplying adequate transport to the gold fields’ community at moderate cost, and of giving you a reasonable return for your capital outlay.

“For the previous year the average freight rate per pound of cargo carried had fallen to 4.12d, and for the year which has just closed it has averaged down to a new low level of 3.36 pence per lb. We have endeavoured to estimate the average freight rate which is likely to be earned by the Company during the current year, and we think that this should result in a charge to the public of below 3d per pound on the average. These rates should still enable us to make a good profit, as there seems to be no indication of a falling off in the quantity of goods requiring transportation by air.

“I have pointed out before that we endeavour to follow a policy of steady reduction of freights, keeping pace with the increased volume of business. We are still following this policy, but, in the opinion of your Board, the point must soon be reached where further appreciable reductions in freight rates will not be possible. Adequate reserves must be maintained and our aircraft kept in the first-class condition we know to be necessary in a tropical climate. Competition has hitherto followed along the natural line of falling prices which accompany a rising turnover.

“One feature worthy of notice is the increase in the passenger traffic, for which we are catering by the importation from England of two well fitted-up tri-motored passenger aeroplanes. One of these has been in service for some months and the other will be arriving shortly.”