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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