Guinea Airways Upset Australia’S

Aviation Calm

Existing Interests Are Re-aligned and Powerful Co.'s Inferentially Declare War

THERE have been some rapid moves in the situation that developed, in February, when Guinea Airways Ltd. inau gurated the new Adelaide-Darwin weekly service with surplus plant from New Guinea.

Guinea Airways did not advertise their plan. The Lockheed flew south, from Lae to Adelaide; underwent a brief over haul; and then rose into the blue and headed north. It arrived next day at Dar win and announced the beginning of the new service. There was talk, also, of a new direct service between Adelaide and Sydney. A 3-engined Ford flew south from New Guinea to Adelaide ready for use.

The news produced astonishing convul sions. There was much running around on the part of the existing Australian aviation companies.

All the chief Australian concerns inter ested in aerial transport, after intermin able patient organisation, had just settled down into three groups, or combines— Qantas Empire Airways (Queensland inland services and the Australian sec tion of the Anglo-Australian service); Airlines of Australia (all services be tween Sydney and Townsville); and Aus tralian National Airways (running all the chief services southwards and west wards of Sydney, and in which the com bined shipping companies have a large holding). The three concerns claimed to be quite independent; but there was an interlocking of capital, and it was clear that each intended to keep off the other’s territory.

The swoop of Guinea Airways Ltd. caused great perturbation. True, G.A. were not butting in on any existing ser vice, and were pioneering a new line (Adelaide-Darwin); but the ‘big three’ did not like the newcomer at all. Everything had been moving so comfortably towards a combine. This outlaw from New Guinea might upset all that. But perhaps it also would be combine-minded. An examina tion of the situation disclosed interesting angles.

The Commonwealth was inviting ten ders for the Sydney—New Guinea air mail, closing March 31. This new ser vice might be regarded as “belonging” to Guinea Airways. But Qantas and Air lines of Australia had been getting ready to tender. Thereupon, Guinea Airways had extended quietly to Australia.

The Australian companies gnawed their finger-nails. Was a bit of bargain ing and a compromise indicated? Guinea Airways, say, to withdraw from Australia and the Australian companies to refrain from tendering for the New Guinea ser vice?

NO one will tell what happened; but it is certainly a fact that the directors of Guinea Airways came from Adelaide to Sydney about the end of February; that representatives of the three major Australian aviation companies were in Sydney at the same time, and that con versations took place between the two groups.

It is equally certain that nothing came of it. The Guinea Airways folk went quietly back to Adelaide, and carried on.

But the three Australian companies showed their hand. They announced, on March 9, that they had made an agree ment “for the complete co-ordination of all major aerial services within the Com monwealth;” and that “this new associa tion will be in a position to tender for all Government services extending from Perth to New Guinea.”

Mr. G. A. Robinson (Airlines of Aus tralia) said: “A satisfactory arrange arrangement was decided upon . . . for the possible inclusion of a service to New Guinea in the existing system.”

The position is clear enough. Guinea Airways are operating in Australia, but they are not asking for trouble and they are keeping well clear of existing ser vices. The Australian companies, eager to monopolise the Australian field, do not like the newcomer, however, and threaten to retaliate by running a line to New

Guinea. Their new agreement or asso ciation equips them to tender for the New Guinea service.

Meanwhile, what of Bums, Phiip and Co. and W. R. Carpenter and Co.?

They cannot be indifferent to these de velopments, and they, especially, are in terested in the proposed new air-mail service to New Guinea.

Burns, Phiip and Co. are wise and far seeing. Having just completed the new contract for the Islands steamer services, they are not going to sit back and sleep.

They are not unaware of what aerial transport may mean presently to steamer services. Just as the other shipping com panies have obtained powerful interests in the Australian and New Zealand avia tion services, B. P. & Co, may be expected to seek some protecting share in Islands aviation services which are likely to com pete with their steamers.

Messrs. Burns, Phiip & Co. and Guinea Airways hitherto have worked together in apparent harmony. It is reasonable to suppose that they have discussed this matter of the Sydney—New Guinea ser vice. But not one word has been pub lished to show where B. P. stand, in this matter. Apparently all is well between them.

There is one piquant element in this situation. Australian National Airways are a member of the anti-Guinea Airways association. Chief owners of National Airways include the principal Australian shipping companies, and the Union Com pany, with which Burns, Phiip and Co. now operate in complete harmony and understanding.

The position of Carpenter and Co. is equally interesting. That firm recently formed Mandated Airlines Ltd., to oper ate services in New Guinea, and the latter are the chief competitors of Guinea Air ways Ltd. It is known that the Carpenter interests would like to operate the Sydney—New Guinea service, and they are likely to put in a strong tender.

There has been no indication, however, of any move by the Carpenter interests to link up with any of the other interests.

Sir Walter Carpenter usually plays a lone hand—and usually to his own profit.

Presumably, the position will not be clarified until tenders have closed on March 31. After that, there may be rapid developments.

Direct Route Is Accepted

MEANWHILE, all aviation interests were busily attacking the route laid down by the desk-wallahs of the aviation department in Australia for the proposed Sydney New Guinea service. It was pointed out that owing to the almost ceaseless rain and low clouds over the trackless jungles and ranges of western and central Papua, the route by Cape York and Daru to New Guinea (which missed Port Moresby, and Papua’s valu able freights, mails, etc.) is much more dangerous than the usual route, via Cooktown and Port Moresby, even with its 450 miles of waterhop included.

Papuan interests have supported this protest. A useful contribution to the dis

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cussion was made by Mr. G. A. Loudon, president of the Papuan Planters’ Asso ciation, who was in Australia in February.

It was officially announced, on March 12, that the C. York route had been adan doned, and that tenders would be accep ted for the direct Cooktown—Pt. Moresby —Salamaua route.