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Airlines Agreements Act 1952

Act No. 100 of 1952 as amended, taking into account amendments up to Act No. 178 of 1973
Registered 18 Nov 2009
Start Date 12 Dec 1973
End Date 26 Jan 1982
Date of repeal 26 Jan 1982
Repealed by Airlines Agreement Act 1981

AIRLINES AGREEMENTS ACT 1952
- Reprinted as at 12 December 1973 (HISTACT CHAP 1866 #DATE 12:12:1973)

AIRLINES AGREEMENTS ACT 1952 - TABLE OF PROVISIONS

TABLE


AIRLINES AGREEMENTS ACT 1952-1973

TABLE OF PROVISIONS
Section
1. Short title
2. Commencement
3. Approval of agreements
4. Guarantees
5. Powers of Australian National Airlines Commission
6. Functions of Minister under Airlines Equipment Act 1958

SCHEDULES 1-4

Agreements

AIRLINES AGREEMENTS ACT 1952 - SECT. 1.
Short title.

SECT

AIRLINES AGREEMENTS ACT 1952-1973
Title amended by No. 70, 1961, s. 3. An Act to approve certain Agreements relating to Air Transport, and for purposes connected therewith.
Short title amended; No. 32, 1918, s. 2.
1. This Act may be cited as the Airlines Agreements Act 1952-1973.*

AIRLINES AGREEMENTS ACT 1952 - SECT. 2.
Commencement.

SECT

2. This Act shall come into operation on the day on which it receives the Royal Assent.*

AIRLINES AGREEMENTS ACT 1952 - SECT. 3.
Approval of agreements.

SECT

Sub-section (1) amended by No. 70, 1961, s. 4; and No. 178, 1973, s. 6.
3. (1) The agreement made between the Commonwealth and Australian National Airways Proprietary Limited, being the agreement a copy of which is set forth in Schedule 1, is approved.
Added by No. 70, 1961, s. 4; amended by No. 178, 1973, s. 6.

(2) The agreement between the Commonwealth, the Australian National Airlines Commission, Ansett Transport Industries Limited and Australian National Airways Proprietary Limited, being the agreement a copy of which is set forth in Schedule 2, is approved.
Added by No. 129, 1972, s. 3; amended by No. 178, 1973, s. 6.

(3) The agreement between the Commonwealth, the Australian National Airlines Commission, Ansett Transport Industries Limited and Ansett Transport Industries (Operations) Proprietary Limited, being the agreement a copy of which is set forth in Schedule 3, is approved.
Added by No. 178, 1973, s. 3.

(4) The agreement between Australia, the Australian National Airlines Commission, Ansett Transport Industries Limited and Ansett Transport Industries (Operations) Proprietary Limited, being the agreement a copy of which is set forth in Schedule 4, is approved.

AIRLINES AGREEMENTS ACT 1952 - SECT. 4.
Guarantees.

SECT

Substituted by No. 70, 1961, s. 5; amended by No. 178, 1973, s. 6.
4. The Commonwealth may give such guarantees as are provided for by the agreements referred to in section 3.

AIRLINES AGREEMENTS ACT 1952 - SECT. 5.
Powers of Australian National Airlines Commission.

SECT

Substituted by No. 178, 1973, s. 4.
5. The Australian National Airlines Commission-

(a) shall be taken to have had power to enter into the agreements referred to in sub-sections 3 (2), (3) and (4); and

(b) is empowered to do all such things as those agreements, and the agreement referred to in sub-section 3 (1) as affected by each of those agreements, provide that the Commission will do.

AIRLINES AGREEMENTS ACT 1952 - SECT. 6.
Functions of Minister under Airlines Equipment Act 1958.

SECT

Added by No. 70, 1961, s. 5; amended by No. 178, 1973, s. 6.
6. So long as the agreements referred to in section 3 remain in force, the Minister shall, for the purposes of those agreements, continue to perform his functions under Part IV of the Airlines Equipment Act 1958.

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AIRLINES AGREEMENTS ACT 1952 - SCHEDULE 1

SCH

Heading substituted by No. 70, 1961, s. 6; amended by No. 178, 1973, s. 6.
SCHEDULE 1
Section 3 (1)

AN AGREEMENT made the twenty-fourth day of October, One thousand nine hundred and fifty-two BETWEEN the COMMONWEALTH OF AUSTRALIA (in this agreement called ''the Commonwealth'') of the one part and AUSTRALIAN NATIONAL AIRWAYS PROPRIETARY LIMITED a company incorporated under the laws of the State of Victoria relating to companies and whose registered office is situated at 390 Flinders Street Melbourne in the said State (in this agreement called ''the Company'') of the other part:

WHEREAS the Australian National Airlines Commission constituted under the Australian National Airlines Act 1945-1947 of the Commonwealth (in this agreement called ''the Commission'') and the Company are the major operators of airline services in Australia for the transport of passengers and goods:

AND WHEREAS in order to facilitate trade and commerce among the States, provide for the efficient carriage of mail by air within Australia and assist the defence of the Commonwealth it is expedient in the opinion of the Commonwealth to make provision for the purpose of ensuring-

(a) the continued existence of the Company, as well as of the Commission, as an operator of airline services within Australia;

(b) the maintenance of competition between the Commission and the Company; and

(c) the efficient and economical operation of air services within Australia:

AND WHEREAS for the attainment of those purposes it is necessary to make arrangements for the operation of air services within Australia and to provide assistance to the Company in manner provided in this agreement:

NOW IT IS HEREBY AGREED by and between the parties to this agreement as follows:-
Approval by Parliament.
1. This agreement shall have no force or effect and shall not be binding on either party unless and until it is approved by the Parliament of the Commonwealth.
Commencement.
2. This agreement shall commence and come into full force and effect upon the date upon which it is so approved.
Financial assistance.
3. (1) Subject to this clause, the Commonwealth will, at the request of the Company, guarantee the repayment to the Commonwealth Bank of Australia of a loan or loans not exceeding in all the sum of Three million pounds (#3,000,000) to be made by that bank to the Company for the purchase of not more than six heavy aircraft of the Vickers ''Viscount'' or other type required by the Company for use in its air services within Australia together with necessary spare engines, spare parts and accessories for those aircraft.

(2) If, after the commencement of this agreement, the Commission is authorised to purchase new or second-hand heavy aircraft, the Commonwealth will facilitate the borrowing of such amount as may be required by the Company for the purchase of an equal number of heavy aircraft comparable in type and price to those authorised for purchase by the Commission, provided always that the total of all amounts borrowed by the Company in accordance with sub-clause (1) of this clause and this sub-clause and not repaid shall not at any one time exceed the sum of Four million pounds (#4,000,000).

(3) In this clause, ''facilitate'' means:-

(a) that, in the event of the Company being unable otherwise to borrow upon reasonable terms and conditions the money required to purchase the aircraft referred to in sub-clause (2) of this clause, the Commonwealth will guarantee the repayment of a loan of such amount as may be required to effect the purchase; and

(b) that, in the event of the Company being unable to obtain that loan, the Commonwealth will advance the amount on loan, as and when required, on terms and conditions (including security) substantially the same as those that would have applied had the loan been available on bank overdraft guaranteed in accordance with this clause.

(4) A guarantee by the Commonwealth in accordance with this clause shall be in such form as the Treasurer shall approve and shall be given only if-

(a) the moneys are borrowed upon reasonable terms and conditions;
(b) proper security is taken by the lender over the aircraft, spare engines, spare parts and accessories purchased by the Company with those moneys; and

(c) the benefit of all security so taken will be transferred to the Commonwealth in the event of the Commonwealth being called upon to make payment under the guarantee.

(5) No guarantee shall be given by the Commonwealth under this clause in respect of, nor shall any then existing guarantee apply to, any moneys borrowed by the Company after the expiration of a period of ten years from the date of the commencement of this agreement nor shall any advance be made by the Commonwealth to the Company under this clause after the expiration of that period.

(6) The Company will make all arrangements necessary to ensure that, upon the expiration of that period of ten years, all amounts borrowed by it and secured by a guarantee by the Commonwealth, or advanced by the Commonwealth, in pursuance of this clause, together with all interest payable thereon, will be repaid by regular payments in the shortest time practicable, but in any event before the expiration of the period of this agreement.

(7) In the event of any default by the Company in the repayment of monies secured by a guarantee, or advanced by the Commonwealth in pursuance of this clause, the Commonwealth shall thereupon be under no obligation to give any further guarantee or to facilitate the raising of any further borrowings by the Company pursuant to this clause.

(8) The Company will-

(a) insure and keep insured against all risks against which it is customary to insure, and to their full insurable value, all aircraft and other assets securing the repayment of moneys borrowed in accordance with this clause; and

(b) in the event of any amount becoming payable by the Commonwealth under any guarantee given by it, repay to the Commonwealth upon demand the amount so paid by the Commonwealth.
Air route charges.
4. (1) The Company will pay to the Commonwealth within one year from the date of the commencement of this agreement, and the Commonwealth will accept, the sum of Three hundred and thirty-seven thousand seven hundred and seventeen pounds six shillings (#337,717 6s.) in full satisfaction of all claims by the Commonwealth against the Company for air route charges in respect of the period commencing on the first day of August One thousand nine hundred and forty-seven and ending on the thirtieth day of June One thousand nine hundred and fifty-two.

(2) Upon the payment by the Company to the Commonwealth of the sum of Three hundred and thirty-seven thousand seven hundred and seventeen pounds six shillings (#337,717 6s. 0) referred to in sub-clause (1) of this clause, the Commonwealth will take steps to discontinue the action instituted by the Commonwealth against the Company in the High Court of Australia by Writ of Summons No. 7 of 1948.

(3) In respect of the period commencing from the first day of July One thousand nine hundred and fifty-two and ending on the date of the expiration of this agreement, the air route charges charged to the Company by the Commonwealth shall not, subject to this clause, exceed one-half of the charges set forth in Air Navigation Order Part 99 dated the twenty-seventh day of May One thousand nine hundred and forty-nine, as amended on the first day of August of that year, unless and except to the extent that an increase becomes necessary because of the provision of additional or improved facilities and services or because of higher costs of maintaining and operating facilities and services.

(4) In the event of the use of routes not specified in the Appendix to that Order, the additional amounts charged in respect of those routes shall be proportionate to one-half of the charges specified in that Order, increased if necessary in accordance with sub-clause (3) of this clause.

Nothing in this clause shall prevent the Commonwealth from imposing air route charges by whatever legislative means and on whatever basis of calculation it thinks fit which will produce substantially the same aggregate amount over the period referred to in sub-clause (3) of this clause as the charges calculated in accordance with that sub-clause, increased if necessary in accordance with that sub-clause, together with the additional amounts charged in respect of new routes in accordance with sub-clause (4) of this clause, would produce.
Air Mail.
5. (1) In providing for the carriage of mail by air, the Commonwealth will take all steps necessary to assure to the Company during the continuance of this agreement, subject to the Company providing efficient services with suitable timetables in accordance with the requirements of the Postmaster-General, as share of the air mail carried on the routes over which both the Commission and the Company operate air services substantially equal to the Commission's share of that mail.

(2) The rates payable to the Company for the carriage of that mail shall be the same as the rates paid to the Commission.

(3) Nothing in this clause affects the obligation of the Company to comply with and observe all the terms and conditions of any contract with the Commonwealth in respect of the carriage of that mail.
Government Business.
6. The Commonwealth agrees to take all steps necessary to ensure that during the continuance of this agreement business transacted on Commonwealth Government warrant in respect of the carriage whether of passengers or of freight is freely available to both the Commission and the Company and that the holder of a Government warrant has a free option as to the service he will use.
Rationalization of Services.
7. (1) The Commission and the Company will take immediate steps to review and will keep under review at all times during the continuance of this agreement, air routes, timetables, fares and freights and other related matters in respect of routes on which both the Commission and the Company are operating services at the date of the commencement of this agreement, so as to avoid unnecessary overlapping of services and wasteful competition, to provide the most effective and economical services with due regard to the interests of the public and to bring earnings into a proper relation to overall costs.

(2) If the Commission and the Company are unable to agree on any matter arising under sub-clause (1) of this clause, a representative of the Commission and a representative of the Company will confer together upon that matter under the Chairman and, if the Commission and the Company are unable to agree, the Chairman shall himself decide the matter in dispute between the Commission and the Company.

(3) The Commission and the Company will, upon being required so to do by the Chairman, furnish or produce to him all information, documents, books, papers and accounts which he considers necessary to enable him to make a decision on any matter arising under this clause.

(4) The Commission and the Company will each abide by and accept any decision which is made by the Chairman on any matter arising under this clause on which they are unable to agree, and will give effect to the decision and not take any steps which are inconsistent with the decision.

(5) Nothing in this clause requires or permits the Commission or the Company to act in any manner inconsistent with the Air Navigation Act 1920-1950 or with the regulations in force under that Act.
Hire or purchase of aircraft.
8. (1) The Commission and the Company will each-

(a) prior to purchasing or hiring an aircraft from the Commonwealth or any authority of the Commonwealth or any corporation in which the Commonwealth has an interest which is available for purchase or hire, apply to the Chairman for a certificate of approval;

(b) not purchase or hire any such aircraft without a certificate of approval of the Chairman;

(c) if either of them purchases such an aircraft without a certificate of approval of the Chairman, sell to the other forthwith on demand, at a price in all respects the same as the price paid in respect of the purchase, the aircraft so purchased.

(2) Nothing in this clause shall prevent either the Commission or the Company hiring an aircraft temporarily to meet emergency requirements.
Certificates of approval.
9. (1) The Chairman shall grant certificates of approval under clause 8 upon application so that available aircraft shall be equally divided between the Commission and the Company.

(2) In the event of an odd number of aircraft being available, the Chairman shall determine whether the Commission or the Company may purchase the odd aircraft.

(3) In arriving at his determination under the last preceding sub-clause, the Chairman shall have regard to the comparative aircraft strength of the Commission and the Company at the time, and shall determine the matter so that relative strength is most nearly maintained.

(4) Should additional aircraft become subsequently available for purchase or hire, the Chairman shall grant a certificate as to the first aircraft so available to whichever of the Commission or the Company was last previously granted a certificate for a lesser number and that one of them shall be the next recipient of a certificate for the greater number when an odd number of aircraft is again available for purchase or hire.
Exercise of Commonwealth powers.
10. (1) The Commonwealth will not exercise any of its powers under or by virtue of an Act, including a power to make regulations, so as to discriminate against the Company.

(2) The Commonwealth will during the continuance of this agreement accord to the Company substantially equal treatment with the Commission in relation to the grant of import licences and the allocation of airport facilities.
Undertakings by Company.
11. (1) The Company undertakes that, during the continuance of this agreement-

(a) unless otherwise agreed by the Commonwealth, it will retain for use in its air services within Australia all aircraft, spare engines, spare parts and accessories purchased with monies borrowed by the Company in accordance with clause 3 of this agreement and all aircraft purchased or hired by the Company in accordance with the provisions of clauses 8 and 9 of this agreement;

(b) it will not sell, mortgage or otherwise charge those aircraft without the consent of the Commonwealth; and

(c) it will maintain and operate efficient air services for the transport of passengers and goods within Australia and will conduct its operations in a businesslike and economical manner.

(2) In the event of-

(a) the Company failing to comply with or observe any of its obligations under sub-clause (1) of this clause;

(b) an order being made for the winding-up of the Company other than voluntarily for the purposes of reconstruction;

(c) the Company assigning this agreement without the prior consent in writing of the Commonwealth,
the Commonwealth may, at its option, by notice in writing to the Company, determine this agreement and, subject to sub-clause (3) of this clause, the Commonwealth and the Commission shall thereupon be released from each and every of their respective obligations under or pursuant to this agreement.

(3) The determination of the agreement under sub-clause (2) of this clause-

(a) shall not prejudice any rights of the Commonwealth under the agreement which have accrued up to the date of determination; and

(b) shall not affect any guarantee given by the Commonwealth before the date of determination, but the Company shall immediately repay to the Commonwealth the amount of any loan advanced by the Commonwealth in accordance with clause 3 of this agreement.
State of emergency.
12. (1) If at any time during the continuance of this agreement the Commonwealth is involved in war or the Minister informs the Company that there is an immediate danger of the Commonwealth being so involved, the Company will, if requested so to do, by the Minister, make available for use by the Commonwealth in such manner and for such time as the Commonwealth requires the whole or such part as may be required of its aircraft, spares, accessories, equipment, hangars, workshops, buildings and facilities.

(2) Subject to the next succeeding sub-clause, the Company shall be entitled to be paid such reasonable compensation for the use of its property under the preceding sub-clause as is determined by mutual agreement or in the absence of agreement by arbitration in accordance with the laws relating to arbitration in force in the State of Victoria.

(3) Nothing contained in this clause shall be deemed to affect the operation of any Act of the Commonwealth, or any regulation, rule, order or other instrument made under or by virtue of an Act, or any other law, relating to the acquisition or requisition of property in time of war or national emergency.
Supply of information.
13. During the continuance of this agreement, the Company will furnish to the Minister, at the end of each of its financial years, a copy of the duly audited profit and loss account and balance sheet of the Company for that year.
Chairman.
14. The Chairman referred to in clauses 7, 8, and 9 of this agreement shall be an independent person appointed by agreement between the Commission and the Company or in default of agreement shall be a retired Justice of the High Court of Australia or of the Supreme Court of a State appointed by the Minister.
Legislation.
15. The Commonwealth will introduce in the Parliament of the Commonwealth such legislation as is necessary to ensure that the Commission will do all such things as this agreement provides that the Commission will do.
Period of agreement.
16. This agreement shall continue in force for fifteen (15) years from its commencing date.
Notices.
17. Any notice or other communication to be given or served by the Commonwealth on the Company under this agreement shall be in writing and shall be deemed to have been duly given or served if signed by or on behalf of the Minister and delivered at or sent by prepaid post addressed to the registered office of the Company and any notice or other communication to be given or served by the Company on the Commonwealth shall be in writing signed by or on behalf of the Secretary of the Company and shall be deemed to have been duly given or served if delivered or sent by prepaid post to the Minister.

18. In this agreement, unless the contrary intention appears-

''air route charges'' means the amounts charged by the Commonwealth to owners of Australian aircraft engaged in regular public transport operations in respect of their use of aerodromes and air route and airway facilities, meteorological services and the search and rescue service maintained and operated by the Commonwealth;

''heavy aircraft'' means aircraft of an all-up weight of not less than forty thousand pounds (40,000 lbs.);

''the Minister'' means the Minister of State for Civil Aviation of the Commonwealth, and includes any member of the Federal Executive Council for the time being acting for the Minister of State for Civil Aviation;

''the Treasurer'' means the Treasurer of the Commonwealth, and includes any member of the Federal Executive Council for the time being acting for the Treasurer.

IN WITNESS whereof the parties have executed this agreement the day and year first hereinbefore written.
SIGNED by the Right Honorable ROBERT GORDON MENZIES, Prime Minister of the Commonwealth, for and on behalf of the Commonwealth, in the presence of-

ROBERT MENZIES

G. J. YEEND GIVEN under the Common Seal of AUSTRALIAN NATIONAL AIRWAYS PROPRIETARY LIMITED this 24th day of October, 1952 by order of the Board.


L.S.

IVAN N. HOLYMAN
Director

J. O. DECLERCK
Secretary

AIRLINES AGREEMENTS ACT 1952 - SCHEDULE 2

SCH

Heading amended by No. 178, 1973, s. 6. Schedule added by No. 70, 1961, s. 7.
SCHEDULE 2
Section 3 (2)

AN AGREEMENT made the twenty-sixth day of September, One thousand nine hundred and sixty-one BETWEEN THE COMMONWEALTH OF AUSTRALIA (in this agreement called ''the Commonwealth'') of the first part, the AUSTRALIAN NATIONAL AIRLINES COMMISSION constituted under the Australian National Airlines Act 1945 as for the time being amended of the Commonwealth (in this agreement called ''the Commission'') of the second part, ANSETT TRANSPORT INDUSTRIES LIMITED, a company incorporated under the laws of the State of Victoria relating to companies and whose registered office is situated at 489 Swanston Street, Melbourne, in the said State of the third part and AUSTRALIAN NATIONAL AIRWAYS PROPRIETARY LIMITED, a company incorporated under the laws of the State of Victoria and whose registered office is situated at 489 Swanston Street, Melbourne, in the said State of the fourth part:

WHEREAS by an agreement (in this agreement called ''the Civil Aviation Agreement 1952'') made the twenty-fourth day of October, One thousand nine hundred and fifty-two between the Commonwealth and Australian National Airways Proprietary Limited and set forth in the Schedule to the Civil Aviation Agreement Act 1952 certain arrangements were agreed for the operation of air services within Australia:

AND WHEREAS by the Civil Aviation Agreement Act 1952 the Parliament of the Commonwealth approved the Civil Aviation Agreement 1952 and provided that the Commission should do all such things as that agreement provides that the Commission would do:

AND WHEREAS following the acquisition by Ansett Transport Industries Limited of all the issued shares in Australian National Airways Proprietary Limited it became desirable to make further provision with respect to the operation of air services within Australia:

AND WHEREAS by an agreement (in this agreement called ''the Civil Aviation Agreement 1957'') made the sixteenth day of December, One thousand nine hundred and fifty-seven between the Commonwealth, the Commission, Ansett Transport Industries Limited, Australian National Airways Proprietary Limited and Ansett Airways Proprietary Limited in the form set forth in the Schedule to the Civil Aviation Agreement Act 1957 additional arrangements including the establishment of a Rationalization Committee were agreed:

AND WHEREAS one of the objects of the parties to this agreement is to secure and maintain a position in which there are two, and not more than two, operators of trunk route airline services, one being the Commission, each capable of effective competition with the other, and the parties intend that this agreement shall be construed having regard to that object:

AND WHEREAS in order to further the purposes and objects referred to in the recitals to the Civil Aviation Agreement 1952 the parties to that agreement consider that it is desirable to extend its term for a period of ten years:

AND WHEREAS the Commonwealth is desirous of facilitating the equipment of the Commission and Australian National Airways Proprietary Limited with turbo-jet aircraft and ensuring that those aircraft are selected and introduced in circumstances which will promote the stability of the domestic air transport industry:

AND WHEREAS the parties to this agreement desire to consolidate the procedures relating to the rationalization of domestic air services in the light of experience of the operation of the Civil Aviation Agreement 1952 and the Civil Aviation Agreement 1957:

NOW THIS AGREEMENT WITNESSETH that it is agreed by and between the parties to this agreement as follows:-
Approval by Parliament.
1. This agreement shall have no force or effect and shall not be binding on the parties to this agreement unless and until it is approved by the Parliament of the Commonwealth.
Commencement.
2. This agreement shall commence and come into full force and effect upon the date upon which it is so approved.
Acquisition of turbo-jet aircraft.
3. (1) The Commission and the Company will not before the eighteenth day of November, One thousand nine hundred and sixty-two purchase, lease, otherwise obtain the use of, place an order for or deliver any letter of intent to purchase any turbo-jet aircraft or apply for a certificate under paragraph (c) of section 13 of the Airlines Equipment Act 1958 in respect of any such aircraft.

(2) The Commission and the Company will not operate any turbo-jet aircraft on air services within Australia and the Territories before the first day of July, One thousand nine hundred and sixty-four.

(3) As to the first two turbo-jet aircraft to be operated by the Commission on public transport services within Australia and the Territories and the first two turbo-jet aircraft to be operated by the Company on public transport services within Australia and the Territories-

(a) neither the Commission nor the Company will purchase, lease, otherwise obtain or place an order for such aircraft respectively until there is in force in respect of all those four aircraft certificates issued under paragraph (c) of section 13 of the Airlines Equipment Act 1958; and

(b) the Commission and the Company will ensure that the first of such turbo-jet aircraft purchased, leased or otherwise obtained for use by the Commission and the Company respectively will commence public transport services on the same date and that the second of such turbo-jet aircraft purchased, leased or otherwise obtained for use by the Commission and the Company respectively will commence public transport services on the same date.

(4) The conditions set out in the last preceding sub-clause shall not apply if either the Commission or the Company, as the case may be, has not been issued with a certificate under paragraph (c) of section 13 of the Airlines Equipment Act 1958 in respect of the aircraft referred to in that sub-clause within six months after the date of the issue to the other of them of such a certificate.

(5) The Commission and the Company shall each notify the other in writing when it makes an application (whether in respect of turbo-jet or other aircraft) to the Minister for a certificate under paragraph (c) of section 13 of the Airlines Equipment Act 1958 and when it is issued with such a certificate.
Guarantees of loans for turbo-jet aircraft.

4. (1) Subject to the provisions of this clause, if, after the commencement of this agreement, the Commission is authorized to purchase or otherwise obtain any turbo-jet aircraft, the Commonwealth will, at the request of Ansett Transport Industries Limited, but not before the eighteenth day of November, One thousand nine hundred and sixty-two, guarantee the repayment of, and the payment of interest on, such loan or loans as may be required for the purpose of enabling the purchase by Ansett Transport Industries Limited or Australian National Airways Proprietary Limited of an equal number of turbo-jet aircraft (and related spares and equipment) comparable in size and performance to those authorized for purchase or to be otherwise obtained by the Commission.

(2) The limit of the total liability of the Commonwealth under a guarantee or guarantees given in pursuance of this clause shall not at any one time exceed the sum that is the equivalent of six million pounds (#6,000,000).

(3) Subject to sub-clause (7) of this clause, a loan to be guaranteed in pursuance of this clause shall be repayable within a period not exceeding seven years from the date on which the loan moneys are received.

(4) A guarantee by the Commonwealth in accordance with this clause shall be in such form as the Treasurer shall approve.

(5) The Commonwealth shall not be bound to guarantee a loan unless-

(a) the moneys are proposed to be borrowed upon reasonable terms and conditions;

(b) proper security is to be taken by the lender over the aircraft and related spare parts and equipment to which the loan relates;

(c) the loan arrangements contain such provision as the Treasurer considers necessary for the transfer to the Commonwealth of the benefit of securities in the event of the Commonwealth being called upon to make payment under the guarantee;

(d) undertakings to the satisfaction of the Treasurer are given that the aircraft and other assets over which security is to be taken for the payment of moneys to which the guarantee relates-

(i) will be insured, and kept insured, against all risks against which it is customary to insure, and to their full insurable value;

(ii) will not be sold or made the subject of a mortgage or charge having priority over the security to the lender in respect of the loan; and

(iii) will not be taken out of Australia for a destination that is not in Australia or the Territories except after the furnishing of such security as the Treasurer may require; and

(e) such other reasonable conditions as the Treasurer thinks necessary are fulfilled.

(6) A guarantee shall not be given by the Commonwealth under this clause in respect of any moneys borrowed by Ansett Transport Industries Limited or Australian National Airways Proprietary Limited after the expiration of a period of ten years commencing on the eighteenth day of November, One thousand nine hundred and sixty-two.

(7) Ansett Transport Industries Limited and Australian National Airways Proprietary Limited will make all arrangements necessary to ensure that, upon the expiration of that period of ten years, all amounts borrowed by them or either of them and secured by a guarantee by the Commonwealth in pursuance of this clause, together with all interest payable thereon, will be repaid by regular payments in the shortest time practicable, but in any event before the expiration of the period of this agreement.
Restrictions on further financial assistance under Civil Aviation Agreement 1952.
5. (1) A guarantee shall not be given by the Commonwealth under clause 3 of the Civil Aviation Agreement 1952 in respect of any money borrowed by Australian National Airways Proprietary Limited after the seventeenth day of November, One thousand nine hundred and sixty-two.

(2) The obligation specified in paragraph (b) of sub-clause (3) of clause 3 of the Civil Aviation Agreement 1952 that, in the event of Australian National Airways Proprietary Limited being unable to obtain a loan in accordance with sub-clause (2) of that clause, the Commonwealth will advance the amount required by that Company on loan as and when required shall upon the commencement of this agreement cease to have force and effect and shall cease to bind the Commonwealth.
A.T.I. not to request guarantees under Airlines Equipment Act.
6. Ansett Transport Industries Limited will not request a guarantee under paragraph (b) of sub-section (1) of section 8 of the Airlines Equipment Act 1958.
Obligations of Commission and Company under Airlines Equipment Act.
7. (1) Subject to the next succeeding sub-clause, the Commission and the Company shall during the continuance of this agreement be bound by the provisions of Part IV. of the Airlines Equipment Act 1958 and shall continue to be subject to the obligations specified in paragraphs (a), (b), (c) and (d) of section 13 of that Act notwithstanding that all moneys in respect of which guarantees have been given under section 8 of that Act have been repaid.

(2) The obligation specified in paragraph (c) of section 13 of the Airlines Equipment Act 1958 shall not apply to aircraft with an all-up weight of less than twenty thousand pounds (20,000 pounds).

(3) The Commonwealth will ensure that the Minister will exercise his powers under Part IV. of the Airlines Equipment Act 1958 during the period of this agreement.
Air navigation charges and taxes on aviation fuel.
8. In implementing its policy of full recovery of the cost of facilities properly attributable to civil air transport, the Commonwealth will take into account the level of air fares, the rate of growth of the industry and the requirement of the airlines to provide a reasonable return on capital, and will not-

(a) increase the rate of air navigation charges payable by the Commission and the Company by more than ten per centum in any period of twelve months; or

(b) increase the amount of tax (including customs and excise duties) payable in respect of each gallon of aviation fuel in any period of twelve months by a greater amount than the corresponding amount of any increase in tax on motor fuel in that period.
Clauses of Civil Aviation Agreements 1952 and 1957 to cease to have effect.
9. (1) Clauses 4, 7 and 14 of the Civil Aviation Agreement 1952 and the Civil Aviation Agreement 1957 shall cease to have force and effect upon the commencement of this agreement.

(2) Notwithstanding anything to the contrary contained in the last preceding sub-clause, the decisions and agreements given or reached as a result of proceedings of the Committee under clause 4 of the Civil Aviation Agreement 1957 and in force at the commencement of this agreement shall have the same force and effect as a decision under clause 12 of this agreement and the provisions of clause 7 of that agreement shall continue to have the same force and effect as if that agreement had not ceased to have force and effect.
Rationalization of services.
10. In order to avoid unnecessary overlapping of services and wasteful competition, to provide the most effective and economical services with due regard to the interests of the public and to bring earnings into a proper relation to overall costs, the Commission and the Company will keep under review at all times during the continuance of this agreement the following matters in relation to air services within Australia and the Territories between Australia and the Territories and between the Territories:-

(a) time-tables, frequencies and stopping places;

(b) the aircraft types and aircraft capacity used on those air services;

(c) proposed variations in the levels of fare and freight rates;

(d) the industry passenger load factor and freighter load factor necessary to permit profitable airline operations by the Commission and the Company in relation to particular periods on specified groups of competitive routes; and

(e) any other matters effecting the efficient and economical operation of those air services.
Establishment and procedure of Rationalization Committee.
11. (1) The Commonwealth, the Commission and Ansett Transport Industries Limited will take immediate steps to establish a Rationalization Committee (in this agreement called ''the Committee'') which shall be constituted from time to time by-

(a) a Chairman who shall be known as the Co-ordinator and shall be nominated by the Minister;

(b) a person nominated by the Commission; and

(c) a person nominated by Ansett Transport Industries Limited.

(2) The members of the Rationalization Committee established under clause 3 of the Civil Aviation Agreement 1957 will at the date of commencement of this agreement become the members of the Committee established under this clause and those members may be assisted by such reasonable number of advisers as they respectively consider appropriate.

(3) The Record of the Rationalization Committee established under clause 3 of the Civil Aviation Agreement 1957 shall become part of the Record of the Committee established under this clause.

(4) The Commonwealth, the Commission and the Company will each, upon being required so to do by the Co-ordinator, furnish or produce to the Committee all information, documents, books, papers and accounts which the Co-ordinator considers necessary to enable the Committee to consider any matter referred to the Committee under the next succeeding clause.

(5) The Committee may from time to time during the continuance of this agreement make binding rules in relation to the conduct of the business of the Committee and may from time to time alter or rescind any of those rules.
Functions of Committee.
12. (1) If the Commission and the Company are unable to agree on any matter referred to in clause 10, the matter in dispute may be referred to the Committee by either of them.

(2) The Committee will consider the matter and, if the members nominated by the Commission and Ansett Transport Industries Limited are, after such consideration, still unable to reach agreement, the Co-ordinator shall decide the matter and subject to the next succeeding clause, his decision shall be final and binding on the Commission and the Company.

(3) The Co-ordinator shall give reasons in writing for each of his decisions under this clause and, where a matter is to be dealt with in accordance with the next succeeding clause, the Co-ordinator shall furnish those reasons, together with the Record of the Committee, to the person referred to in that clause as the Arbitrator.
Appointment and functions of Arbitrator.
13. (1) There shall be a person (in this agreement called ''the Arbitrator'') who is a person appointed by agreement between the Commission and Ansett Transport Industries Limited or in default of agreement a Justice of a federal court other than the High Court made available under arrangements made by the Attorney-General.

(2) If the Commission or the Company is dissatisfied with a decision of the Co-ordinator under the last preceding clause and gives notice in writing to the Arbitrator and the Coordinator to that effect within fourteen days after the date of the Co-ordinator's decision, the matter shall be dealt with in accordance with this clause.

(3) Representatives of the Commission and the Company will confer together on the matter in dispute under the chairmanship of the Arbitrator and, if those representatives are unable to agree, the Arbitrator himself shall decide the matter and his decision shall be final and binding on the Commission and the Company.

(4) The Arbitrator shall have in relation to proceedings under this clause like powers to those of the Co-ordinator under sub-clause (4) of clause 11.
Obligation to comply with rationalization agreements and decisions.
14. The Commission and the Company will each give effect to and not take any steps inconsistent with-

(a) an agreement reached as the result of a review under clause 10 or of consideration by the members of the Committee under clause 12;

(b) a final and binding decision of the Co-ordinator; and

(c) a decision of the Arbitrator.
Obligation to extend cross charter agreement.
15. The Commission, Ansett Transport Industries Limited and Australian National Airways Proprietary Limited will extend the agreement known as the cross charter agreement made the twenty-sixth day of February, One thousand nine hundred and sixty from the date upon which that agreement is due to expire until the first two turbo-jet aircraft obtained by the Commission or the Company in accordance with clause 3 of this agreement commence public transport services, subject only to the exclusion of clauses 19, 24 and 25 of the cross charter agreement and to such modification (if any) in respect of the period after the sixth day of March, One thousand nine hundred and sixty-three of the financial provision of that agreement relating to the rental payable for the hire of aircraft as may be agreed between the parties thereto or as, in the absence of agreement, may be determined by the arbitration of one arbitrator mutually agreed upon or failing such agreement by arbitration under the laws relating to arbitration for the time being in force in the State of Victoria.
Commonwealth access to Company's accounts.
16. For so long as a loan or any interest on a loan the repayment of which has been guaranteed by the Commonwealth under clause 3 of the Civil Aviation Agreement 1952 or clause 4 of this agreement remains unpaid, officers employed in the Commonwealth Service shall have full access at all reasonable times to the financial accounts of the Company when authorised in writing by the Minister for that purpose and the Company will do everything within its power to ensure that the officers so authorised have similar access to the financial accounts of any company or firm in which the Company, whether directly or indirectly, now has or hereafter may have a controlling interest.
Compliance with agreement.
17. Ansett Transport Industries Limited will do everything within its power to ensure that the companies or firms in which it has from time to time, whether directly or indirectly, a controlling interest will do all such acts and things as this agreement and the Civil Aviation Agreement 1952 as affected by this agreement provide that they will do and that those companies and firms will not do anything inconsistent with the provisions or purposes of those agreements.
Air Navigation Act.
18. Nothing in this agreement or the Civil Aviation Agreement 1952 as affected by this agreement requires or permits the Commission or the Company to act in any manner inconsistent with the Air Navigation Act 1920-1960 or with the regulations in force under that Act.
Amendments to Civil Aviation Agreement 1952.
19. Upon the commencement of this agreement-

(a) the term ''the Chairman'', where it appears in the Civil Aviation Agreement 1952 as affected by this agreement, shall mean the Arbitrator appointed in accordance with clause 13 of this agreement;

(b) the term ''aircraft'', where it appears in clauses 8 and 9 of the Civil Aviation Agreement 1952 as affected by this agreement, shall refer only to aircraft with an all-up weight exceeding fifty thousand pounds (50,000 pounds); and

(c) the term ''the Company'', where it appears in the clauses of the Civil Aviation Agreement 1952 as affected by this agreement, shall mean Ansett Transport Industries Limited and shall include every company or firm in which that Company has from time to time, whether directly or indirectly, a controlling interest.
Extension of term of Civil Aviation Agreement 1952.
20. The Civil Aviation Agreement 1952 as affected by this agreement shall continue in force for a further period of ten years commencing on and from the date on which the period specified in clause 16 of the Civil Aviation Agreement 1952 expires and this agreement shall be read and construed as forming part of that agreement as so extended and affected.
Legislation.
21. The Commonwealth will introduce in the Parliament of the Commonwealth such legislation as is necessary to enable the Commission to do all such things as this agreement and the Civil Aviation Agreement 1952 as affected by this agreement provide that the Commission will do.
Period of agreement.
22. This agreement shall remain in force for so long as the Civil Aviation Agreement 1952 as extended by this agreement is in force.
Interpretation.
23. (1) In this agreement, unless the contrary intention appears-

''the Attorney-General'' means the Attorney-General of the Commonwealth and includes any Minister or member of the Federal Executive Council for the time being acting for the Attorney-General of the Commonwealth;

''the Company'' means Ansett Transport Industries Limited and every company or firm in which Ansett Transport Industries Limited has from time to time, whether directly or indirectly, a controlling interest;

''the Minister'' means the Minister of State for Civil Aviation of the Commonwealth, and includes any Minister or member of the Federal Executive Council for the time being acting for the Minister of State for Civil Aviation;

''the Territories'' means the Territories of or administered by the Commonwealth; and

''the Treasurer'' means the Treasurer of the Commonwealth, and includes any Minister or member of the Federal Executive Council for the time being acting for the Treasurer.

(2) An obligation, prohibition or limitation imposed on the Company under this agreement shall severally bind or apply to Ansett Transport Industries Limited and each and every company or firm in which that company has from time to time, whether directly or indirectly, a controlling interest.

IN WITNESS whereof the parties have executed this agreement the day and year first hereinbefore written.
SIGNED, SEALED AND DELIVERED BY THE RIGHT HONOURABLE ROBERT GORDON MENZIES, Prime Minister of the Commonwealth, for and on behalf of the Commonwealth, in the presence of-
ROBERT MENZIES

A. L. MOORE
The COMMON SEAL of the AUSTRALIAN NATIONAL AIRLINES COMMISSION was hereunto affixed, in the presence of-
L.S.

G. T. CHIPPINDALL, Chairman
LYLE J. BYRNE, Secretary
The COMMON SEAL OF ANSETT TRANSPORT INDUSTRIES LIMITED was hereunto affixed, in the presence of-
L.S.

R. M. ANSETT, Director
GEORGE JONES, Director
H. J. CLAPPISON, Secretary
The COMMON SEAL OF AUSTRALIAN NATIONAL AIRWAYS PROPRIETARY LIMITED was hereunto affixed, in the presence of-
L.S.

R. M. ANSETT, Director
F. PASCOE, Director
A. FLANDERS, Secretary

AIRLINES AGREEMENTS ACT 1952 - SCHEDULE 3

SCH

Heading amended by No. 178, 1973, s. 6. Schedule added by No. 129, 1972, s. 5.
SCHEDULE 3
Section 3 (3)

AN AGREEMENT made the twenty-first day of October One thousand nine hundred and seventy-two between the COMMONWEALTH OF AUSTRALIA (in this Agreement called ''the Commonwealth'') of the first part, the AUSTRALIAN NATIONAL AIRLINES COMMISSION constituted under the Australian National Airlines Act 1945-1970 (in this Agreement called ''the Commission'') of the second part, ANSETT TRANSPORT INDUSTRIES LIMITED a company incorporated under the laws of the State of Victoria relating to companies whose registered office is situate at 489 Swanston Street, Melbourne in the said State (in this Agreement called ''the Company'') of the third part and ANSETT TRANSPORT INDUSTRIES (OPERATIONS) PROPRIETARY LIMITED (formerly called Australian National Airways Proprietary Limited) a company incorporated under the laws of the State of Victoria relating to companies whose registered office is situate at 489 Swanston Street, Melbourne aforesaid (in this Agreement called ''the Operating Company'') of the fourth part.

WHEREAS by an agreement (in this Agreement called ''the 1952 Agreement'') made the twenty-fourth day of October, 1952 between the Commonwealth and Australian National Airways Proprietary Limited and set forth in the Schedule to the Civil Aviation Agreement Act 1952 certain arrangements were agreed to with respect to the operation of air services within Australia:

AND WHEREAS by the Civil Aviation Agreement Act 1952 the Parliament of the Commonwealth approved the 1952 Agreement and provided that the Commission should do all such things as that agreement provides that the Commission would do:

AND WHEREAS following the acquisition by the Company of all the issued shares in Australian National Airways Proprietary Limited an agreement was made the sixteenth day of December, 1957 between the Commonwealth, the Commission, the Operating Company, Ansett Airways Proprietary Limited and the Company in accordance with the provisions of the Civil Aviation Agreement Act 1957 under which additional arrangements were agreed upon with respect to the operation of air services within Australia, including the establishment of a Rationalization Committee.

AND WHEREAS by an agreement (in this Agreement called ''the 1961 Agreement'') made the twenty-sixth day of September, 1961 between the Commonwealth, the Commission, the Company and the Operating Company and approved by the Airlines Agreements Act 1961 further provision was made with respect to the said air services, including the consolidation of procedures relating to the rationalization of domestic air services:

AND WHEREAS it was provided by the 1961 Agreement that upon the commencement of that agreement the said agreement dated the sixteenth day of December, 1957 and certain provisions of the 1952 Agreement ceased to have force and effect:

AND WHEREAS it was further provided by the 1961 Agreement that the 1952 Agreement as affected by the 1961 Agreement will continue in force for a further period of ten years so as to expire on the eighteenth day of November, 1977 and that the 1961 Agreement is to be read and construed as forming part of the 1952 Agreement as so extended and affected:

AND WHEREAS the parties hereto are prepared to agree to the further continuance in force of those agreements upon and subject to the terms and conditions hereinafter set out and subject to this Agreement being entered into by the parties accordingly:

NOW THIS AGREEMENT WITNESSES and it is agreed by and between the parties to this Agreement as follows:-
Approval by Parliament.
1. This Agreement shall have no force or effect and shall not be binding on the parties to it unless and until it is approved by the Parliament of the Commonwealth.
Commencement.
2. This Agreement shall commence and come into full force and effect upon the date upon which it is approved by the Parliament of the Commonwealth.
The 1952-1972 Airlines Agreement.
3. (1) This Agreement is supplemental to the 1952 Agreement and shall be read and construed as forming part of the 1952 Agreement as extended and affected by the 1961 Agreement.

(2) The 1952 Agreement as extended and affected by the 1961 Agreement and by this Agreement, the 1961 Agreement as extended and affected by this Agreement, and this Agreement are together referred to in this Agreement as, and shall be known as, ''the 1952-1972 Airlines Agreement''.
Continuance of Agreements.
4. (1) Notwithstanding the provisions of the 1952 Agreement and of the 1961 Agreement relating to the periods of operation of those agreements, the 1952-1972 Airlines Agreement shall continue in force after the eighteenth day of November, 1977 unless and until determined in accordance with the provisions of this clause.

(2) The Company may terminate the 1952-1972 Airlines Agreement by giving, at any time after the thirty-first day of December, 1977, to the Minister at the head office of the Department of Civil Aviation notice in writing of termination taking effect not less than five years after the giving of the notice.

(3) The Commonwealth may terminate the 1952-1972 Airlines Agreement by giving, at any time after the thirty-first day of December, 1977, to the Company at its registered office for the time being notice in writing of termination taking effect not less than five years after the giving of the notice.

(4) Notice under the last preceding sub-clause shall not be given unless the consent of both Houses of the Parliament of the Commonwealth expressed by resolution has first been given to termination of the 1952-1972 Airlines Agreement by the Commonwealth.

(5) If the Company or the Commonwealth gives a notice under this clause it shall as soon as practicable thereafter furnish a copy of the notice to the Commission at its head office and to the Operating Company at its registered office for the time being.
Parallel Scheduling.
5. (1) If in the opinion of the Minister air services operated on any route by the Commission and the Operating Company in accordance with timetables approved by the Director-General pursuant to regulation 106C of the Air Navigation Regulations are operated at such times, having regard to the relative closeness in scheduling of flights of the two airlines, as to give rise to substantial grounds for complaint that the services are not operated at intervals that adequately serve the public interest the Minister may by notice in writing given to the Commission at its head office and to the Company at its registered office for the time being invoke the application of the provisions of this clause with respect to the relevant services.

(2) Upon the invocation of the application of the provisions of this clause the timetables of the relevant air services shall be deemed to be a matter in dispute between the Commission and the Company and to have been referred to the Committee pursuant to sub-clause (1) of clause 12 of the 1961 Agreement to be determined in accordance with the provisions of clauses 12, 13 and 14 of the 1961 Agreement.

(3) The Co-ordinator and if appropriate the Arbitrator shall decide the matter deemed to be in dispute under this clause as if the Commission and the Company and their respective nominees on the Committee were not able to reach agreement for the purposes of sub-clauses (1) and (2) of clause 12 and of sub-clause (3) of clause 13 by determining the timetables in accordance with which, subject to the approval of the Director-General under the said regulation 106C, the air services are to be operated.

(4) The Co-ordinator and if appropriate the Arbitrator shall take into account the views in respect of the matter to be decided that are presented on behalf of the Minister in the course of the relevant proceedings in addition to other relevant factors.
Rural Air Services.
6. For the purpose of providing for the maintenance and encouragement of rural air services, the Commission and the Operating Company each undertakes-

(a) that it will maintain airline services to all places to which it operates airline services at the date of this Agreement for so long as the revenue from the particular service exceeds the direct operating costs of that service; and

(b) that it will not cease to operate a service except after prior consultation with the Director-General with a view to the replacement of the service by an air service conducted by the holder of a charter licence to whom approval has been given to operate a regular public transport service in accordance with regulation 203 of the Air Navigation Regulations.
Promotional Fares.
7. The Commission, the Company and the Operating Company undertake to investigate and keep under review the introduction, consistently with the objective of maintaining efficient and economical air services, of promotional fares for the purposes of stimulating traffic and increasing returns and to take appropriate action for the introduction of such fares as are decided upon for those purposes.
Air Freight.
8. The Commission, the Company and the Operating Company undertake to investigate and keep under review and to implement appropriate measures to stimulate and promote the development on a sound and economic basis of the carriage of freight by air.
Curfew Operations.
9. (1) The Commission and the Operating Company undertake not to operate turbo-jet aircraft at the Sydney, Brisbane and Adelaide airports and at any other airports at which operations are for the time being restricted to specific hours during the hours within which operations by turbo-jet aircraft are normally prohibited at those airports.

(2) The last preceding sub-clause will not apply to cases of emergency or to cases where there has been unavoidable delay or to operations the Minister considers are necessary in the interests of the public generally in order that airline services may be provided during peak periods.
Other Operators.
10. The parties acknowledge that nothing in the 1952-1972 Airlines Agreement shall preclude the Commonwealth, the Minister or the Director-General from permitting the holder of an airline or charter licence to develop-

(a) air services on routes other than trunk routes; or

(b) specialist freight and passenger services (including low-cost inclusive tours) of a nature which in the opinion of the Minister are not adequately provided for either by the Commission or the Operating Company,
consistently with the object of the parties to the 1952-1972 Airlines Agreement to secure and maintain a position where there are two and not more than two operators of trunk route airline services, one being the Commission, each capable of effective competition with the other.
Supply of information by the Company.
11. (1) So long as the 1952-1972 Airlines Agreement remains in force, the Company will as soon as practicable after the end of each financial year commencing with the financial year that ends on the thirtieth day of June, 1973 furnish to the Minister for presentation to the Parliament of the Commonwealth full financial information in respect of that part of its business and that of its subsidiary companies relating to the operation of air services.

(2) The financial information shall be compiled from the accounts of the Company that have been audited as required under the provisions of the Companies Act 1961 of the State of Victoria as amended from time to time and shall be furnished in a form approved by the Minister and certified as to correctness either by any two Directors of the Company or in such other manner as may be approved by the Minister from time to time.
Cost Recovery Policy.
12. Without prejudice to the operation of clause 8 of the 1961 Agreement, the Commission, the Company and the Operating Company recognise that the Commonwealth is entitled to fully recover from the air transport industry the costs properly attributable to the provision of facilities for civil air transport and agree to facilitate the implementation of measures taken by the Commonwealth for the purpose of achieving that objective.
Compliance with Agreement.
13. (1) An obligation, prohibition or limitation imposed on the Company or the Operating Company under the 1952-1972 Airlines Agreement shall be deemed to severally bind or apply to the Company, the Operating Company and every company or firm in which the Company or the Operating Company has from time to time, whether directly or indirectly, a controlling interest.

(2) The Company will ensure that all companies or firms in which it has from time to time, whether directly or indirectly, a controlling interest will do all such acts and things as the 1952-1972 Airlines Agreement provides that they will do and the Company and those companies and firms will not do anything inconsistent with the provisions or purposes of the 1952-1972 Airlines Agreement.
Legislation.
14. The Commonwealth will include in the legislation introduced in the Parliament of the Commonwealth to approve this Agreement a provision that will authorise and empower the Commission, in the exercise of its powers and functions, to enter into this Agreement and to do all things that the 1952-1972 Airlines Agreement provides that the Commission will do or is empowered to do.
Definitions.
15. (1) In the 1952-1972 Airlines Agreement, unless the contrary intention appears-

''the Director-General'' means the Director-General of Civil Aviation and includes a person for the time being acting in that office.

(2) Throughout the 1952-1972 Airlines Agreement, except where the context otherwise requires-

(a) references to Australia shall be read as including the Territories;

(b) references to the Territories, including the reference in sub-paragraph (a) of this sub-clause, shall not include the Territory of Papua New Guinea after that Territory attains independence.

(3) In clause 10 of the 1961 Agreement as extended and affected by this Agreement the expression ''air services'' means air services for which an airline licence under the Air Navigation Regulations is or has been held during the currency of the 1952-1972 Airlines Agreement by both the Commission and the Operating Company.

IN WITNESS WHEREOF the parties have executed this Agreement as at the day and year first above written.
SIGNED SEALED AND DELIVERED for and on behalf of THE COMMONWEALTH OF AUSTRALIA by the Right Honourable WILLIAM McMAHON Prime Minister, in the presence of- WILLIAM McMAHON
L.S.

GRAHAM R. FELL
THE COMMON SEAL of the AUSTRALIAN NATIONAL AIRLINES COMMISSION was hereunto affixed in the presence of- L.S.

F. R. W. SCHERGER Chairman

L. J. FITZGERALD Secretary
THE COMMON SEAL OF ANSETT TRANSPORT INDUSTRIES LIMITED was hereunto affixed in the presence of- L.S.

R. M. ANSETT Director

R. L. COOPER Secretary
THE COMMON SEAL OF ANSETT TRANSPORT INDUSTRIES (OPERATIONS) PROPRIETARY LIMITED was hereunto affixed in the presence of- L.S.

F. PASCOE Director

H. W. POULTON Director

J. K. SIMPSON Secretary

AIRLINES AGREEMENTS ACT 1952 - SCHEDULE 4

SCH

Added by No. 178, 1973, s. 5.
SCHEDULE 4
Section 3 (4)

AN AGREEMENT made the twenty-sixth day of October One thousand nine hundred and seventy-three between THE COMMONWEALTH OF AUSTRALIA (in this agreement called ''the Commonwealth'') of the first part, the AUSTRALIAN NATIONAL AIRLINES COMMISSION constituted under the Australian National Airlines Act 1945-1973 (in this agreement called ''the Commission'') of the second part, ANSETT TRANSPORT INDUSTRIES LIMITED a company incorporated under the laws of the State of Victoria relating to companies whose registered office is situated at 489 Swanston Street, Melbourne in the said State (in this agreement called ''the Company'') of the third part and ANSETT TRANSPORT INDUSTRIES (OPERATIONS) PROPRIETARY LIMITED (formerly called Australian National Airways Proprietary Limited) a company incorporated under the laws of the State of Victoria relating to companies whose registered office is situated at 489 Swanston Street, Melbourne aforesaid (in this agreement called ''the Operating Company'') of the fourth part.

WHEREAS by an agreement (in this agreement called ''the 1952 Agreement'') made the twenty-fourth day of October, 1952 between the Commonwealth and Australian National Airways Proprietary Limited and set forth in the Schedule to the Civil Aviation Agreement Act 1952 certain arrangements were agreed to with respect to the operation of air services within Australia:

AND WHEREAS by the Civil Aviation Agreement Act 1952 the Parliament of the Commonwealth approved the 1952 Agreement and provided that the Commission should do all such things as that agreement provides that the Commission would do:

AND WHEREAS following the acquisition by the Company of all the issued shares in Australian National Airways Proprietary Limited an agreement was made the sixteenth day of December, 1957 between the Commonwealth, the Commission, the Operating Company, Ansett Airways Proprietary Limited and the Company in accordance with the provisions of the Civil Aviation Agreement Act 1957 under which additional arrangements were agreed upon with respect to the operation of air services within Australia, including the establishment of a Rationalization Committee:

AND WHEREAS by an agreement (in this agreement called ''the 1961 Agreement'') made the twenty-sixth day of September, 1961 between the Commonwealth, the Commission, the Company and the Operating Company and approved by the Airlines Agreements Act 1961 further provision was made with respect to the said air services, including a provision limiting the extent of the rate of annual increases in air navigation charges which the Commonwealth might impose in implementing its policy of full recovery of the cost of facilities properly attributable to civil air transport:

AND WHEREAS it was provided by the 1961 Agreement that upon the commencement of that agreement the said agreement dated the sixteenth day of December, 1957 and certain provisions of the 1952 Agreement ceased to have force and effect:

AND WHEREAS it was further provided by the 1961 Agreement that the 1952 Agreement as affected by the 1961 Agreement will continue in force for a further period of ten years so as to expire on the eighteenth day of November, 1977 and that the 1961 Agreement is to be read and construed as forming part of the 1952 Agreement as so extended and affected:

AND WHEREAS by an agreement (in this agreement called ''the 1972 Agreement'') made the twenty-first day of October, 1972 between the Commonwealth, the Commission, the Company and the Operating Company and approved by the Airlines Agreements Act 1972 further provision was made with respect to the said air services including provision for both the 1952 Agreement as affected and extended by the 1961 Agreement and by the 1972 Agreement and the 1961 Agreement as affected and extended by the 1972 Agreement to continue in force after the eighteenth day of November, 1977 unless and until determined in accordance with the provisions of the 1972 Agreement, but the 1972 Agreement did not affect the operation of the provision in the 1961 Agreement limiting the extent of annual increases in the rate of air navigation charges:

AND WHEREAS it was further provided in the 1972 Agreement that the 1952 Agreement as affected and extended by the 1961 Agreement and by the 1972 Agreement, the 1961 Agreement as affected and extended by the 1972 Agreement and the 1972 Agreement were together to be referred to and to be known as ''the 1952-1972 Airlines Agreement'':

AND WHEREAS for the speedier attainment of the Commonwealth's policy referred to in the 1961 Agreement of full recovery of the cost of facilities properly attributable to civil air transport the Commonwealth's present objective is to recover eighty per centum of that cost by the thirtieth day of June, 1978:

AND WHEREAS to facilitate attainment of that objective the parties hereto are prepared to agree that the 1952-1972 Airlines Agreement shall be made subject to the terms and conditions hereinafter set out and to enter into this agreement accordingly.

NOW THIS AGREEMENT WITNESSES and it is agreed between the parties to this agreement as follows:-

1. This agreement shall have no force or effect and shall not be binding on the parties to it unless and until it is approved by the Parliament of the Commonwealth.

2. This agreement shall commence and come into full force and effect on the date upon which it is approved by the Parliament of the Commonwealth.

3. (1) This agreement is supplemental to the 1952 Agreement and shall be read and construed as forming part of that agreement as extended and affected by the 1961 Agreement and by the 1972 Agreement and accordingly shall be read and construed as forming part of the 1952-1972 Airlines Agreement.

(2) The 1952-1972 Airlines Agreement as affected by this agreement and this agreement are together referred to in this agreement as, and shall be known as, ''the 1952-1973 Airlines Agreement''.

4. For the purpose of more speedily implementing the Commonwealth's policy of full recovery of the cost of facilities properly attributable to civil air transport and with a view to achieving the objective of recovering by the year ending the thirtieth day of June, 1978 eighty per centum of the annual cost of those facilities-

(a) paragraph (a) of clause 8 of the 1961 Agreement is amended by deleting the words ''ten per centum'' and inserting in their place the words ''fifteen per centum'';

(b) on and from the first day of December 1973 the succeeding provisions of this agreement shall apply with respect to and in relation to the air navigation charges payable by the Commission and the Company.

5. The Commonwealth will as from the first day of December, 1973 increase the rate of air navigation charges by fifteen per centum.

6. The Commission or the Operating Company may from time to time make written application to the Minister to increase air fares or freight charges where loss or loss of profit on its overall operations is claimed to be due to the imposition under or by virtue of this agreement of higher air navigation charges.

7. Whenever the Minister is satisfied that because of the imposition of higher air navigation charges loss or loss of profit is suffered by the Commission or the Operating Company he will as soon as possible and to the extent he considers necessary to make good the loss complained of by the Commission or the Operating Company approve increases in either or both air fares and freight charges as the case may require.

8. (1) The air navigation charges payable pursuant to the Air Navigation (Charges) Act 1952 as amended will be reviewed after the thirtieth day of June, 1975 and not later than the thirtieth day of September, 1975 following negotiation between the parties to this agreement.

(2) Upon review due regard will be given by the Commonwealth to the progress that has been made towards the attainment of its objective aforesaid of recovering eighty per centum of the annual cost of facilities properly attributable to civil air transport.

(3) In contemplation of or following review of air navigation charges under this clause the parties to this agreement will negotiate changes to this agreement which may be necessary to ensure attainment of the objective aforesaid as referred to in sub-clause (2) of this clause.

9. For the purposes of the recovery of air navigation charges in accordance with the objective of the Commonwealth referred to in the last preceding clause, amounts that are paid to the Commonwealth by way of duty or tax on aviation fuel shall be deemed to have been received by way of recovery of the cost of facilities properly attributable to civil air transport.

10. Without prejudice to the operation of any other clause of this agreement, the Commission, the Company and the Operating Company recognise that the Commonwealth is entitled to fully recover from the air transport industry the costs properly attributable to the provision of facilities for civil air transport and agree to facilitate the implementation of measures taken by the Commonwealth for the purpose of achieving that objective.

11. In the implementation of its policy of full recovery of the costs of facilities properly attributable to civil air transport, the Commonwealth will increase the rate of air navigation charges to international operators by the same percentage as that applied from time to time in respect of the operations of the Commission and the Operating Company.

12. In further implementation of its policy of full recovery of the costs of facilities properly attributable to civil air transport, the Commonwealth will consult annually with the Commission and the Company on departmental activities, programmes, practices, procedures and costs with a view to minimising the amount to be recovered by way of air navigation charges.

13. This agreement shall be in operation until the thirtieth day of June 1978 and shall as from that date, but without prejudice to its prior operation have no further force or effect and as from that date the 1952-1972 Airlines Agreement shall continue in full force and effect in accordance with its provisions with paragraph (a) of clause 8 of the 1961 Agreement in the same form as prior to the coming into operation of this agreement.

IN WITNESS WHEREOF the parties hereto have executed this agreement as at the day and year first above written.

SIGNED SEALED AND DELIVERED for and on behalf of THE COMMONWEALTH OF AUSTRALIA by the Honourable CHARLES KEITH JONES, Minister for Civil Aviation, in the presence of-

C. K. JONES
L.S.
C. J. SMITH

THE COMMON SEAL of the AUSTRALIAN NATIONAL AIRLINES COMMISSION was hereunto affixed in the presence of-
L.S.

F. R. W. SCHERGER
Chairman
L. J. FITZGERALD
Secretary

THE COMMON SEAL of ANSETT TRANSPORT INDUSTRIES LIMITED was hereunto affixed in the presence of-
L.S.

R. M. ANSETT
Director
W. F. FRANKLIN
Secretary

THE COMMON SEAL of ANSETT TRANSPORT INDUSTRIES (OPERATIONS) PROPRIETARY LIMITED was hereunto affixed in the presence of-

L.S.

F. PASCOE
Director
H. W. POULTON
Director
J. K. SIMPSON
Secretary
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AIRLINES AGREEMENTS ACT 1952 - NOTE


NOTE
1. The Airlines Agreements Act 1952-1973 comprises the Civil Aviation Agreement Act 1952 as amended by the other Acts specified in the following table:
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Date of Assent and
Act Number and year of commencement
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Civil Aviation Agreement Act 1952 No. 100, 1952 18 Nov 1952
Civil Aviation Agreement Act 1957 No. 86, 1957 12 Dec 1957
Airlines Agreements Act 1961 No. 70, 1961 27 Oct 1961
Airlines Agreements Act 1972 No. 129, 1972 2 Nov 1972
Airlines Agreements Act 1973 No. 178, 1973 12 Dec 1973
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