Qantas and Air Freight

In New Guinea

THE confused position in relation to the finances of air trans port companies is illustrated by recent developments in Papua- New Guinea.

Last month, the Administrator of New Guinea, with Ministerial sanction, issued instructions that all Government air freight should be reserved for Qantas. The view was taken that, as Qantas provides the backbone of the air services which make life possible in the Territories, and as Qantas cannot avoid losses on these services, Qantas should be helped by the Government.

There are several private airline operators in Papua-New Guinea.

Government freights are important to them. Loss of such business might cripple them.

Complaints were made to Can berra. Some Government members said the new order contravened the Government policy of encouraging private enterprise.

Within a week, the Australian Government asked the NG Ad ministration to withdraw the order allotting all freight to Qantas; and this was done.

Mandated Airlines Not To

Carry Mail

BECAUSE they consider that they are being made a con venience of, New Guinea’s biggest privately-owned airline, Mandated Airlines, have decided

that they will carry no more aii. mail in the Territory.

Qantas Empire Airways, Govern*, ment-owned operators, receive s subsidy from the Government to carry mails but MAL receive only ordinary freight rates.

MAL carried mails twice weekli to Wewak, Madang and Rabaul ano the decision will mean a ment to mail services for residents; of these districts.