by Government
p. 11 · Read in the full issue
Guinea Airways
Driven Out of Darwin Service
/GUINEA AIRWAYS, LTD., has been \J forced by the Australian Govern ment out of the Adelaide-Darwin air service which they pioneered in the 30’s. This run has been monopolised by the Australian Government-owned Trans-Australia Airlines, and G'Air’s licence to operate was to have expired on October 31.
At first the Commonwealth Governmen refused to renew this licence thereby rendering the company not liable for compensation as a going concern forced out of business ,by the Commonwealth.
After pressure had been brought to ben on the Commonwealth Attorney-General’s Department by the Premier of South Australia, Mr. Plavford. the licence was extended until December 31, 1947.
Subsequently it was announced that the Federal Government and Guinea Airways had come to “an amicable settlement” and that G’Air would cease operation on the Adelaide-Darwin route forthwith.
Local services of the company from Adelaide will continue. /GUINEA AIRWAYS LTD. went into \J operation in New Guinea in 1927, freighting cargo and carrying pas sengers between Lae and the Morobe goldfields centres. It made large profits in the early years but when the gold industry in Morobe became more or less stabilised and profits dropped in the middle thirties, G’Air began to look else where. It was then that they pioneered the Adelaide-Darwin route. They were subsequently given a subsidy to carry overseas mail between Darwin and the southern states, and this service de veloped into a money-spinner.
The company continued its operations in New Guinea until the entry of Japan into the war put an end to that activity.
Some of their planes and equipment there were lost in air raids. It was intended that the company should start up again after hostilities ceased; but last year it was decided that conditions in the Terri tory, and future prospects, did not war rant this. All interests were therefore withdrawn to Australia.
Now that the company has fallen to the nationalising scythe in Australia, the once large and vigorous organisation is left with a few South and Central Aus tralia local routes.
The chairman of directors of the com pany, Mr. S. Powell, said that share holders would be advised of the com pany’s intentions shortly. He stated that the Adelaide-Darwin route made a profit of £lB,OOO last year.