AIRLINES EQUIPMENT ACT 1958
- Reprinted as at 19 December 1973 (HISTACT CHAP 1867 #DATE 19:12:1973)
AIRLINES EQUIPMENT ACT 1958 - TABLE OF PROVISIONS
TABLE
AIRLINES EQUIPMENT ACT 1958
TABLE OF PROVISIONS
PART I-PRELIMINARY
Section
1. Short title
2. Commencement
3. (Repealed)
4. Definitions
PART II-FINANCIAL ARRANGEMENTS IN RELATION TO THE
AUSTRALIAN
NATIONAL AIRLINES COMMISSION
5. Amendment of Australian National Airlines Act 1945-1956
6. Borrowing by the Commission for the purchase of a Lockheed
Electra
aircraft
7. Purchase by the Commission of a further Lockheed Electra aircraft
from Qantas Empire Airways Limited
PART III-FINANCIAL ARRANGEMENTS IN RELATION TO AUSTRALIAN
NATIONAL AIRWAYS PROPRIETARY LIMITED AND CERTAIN OTHER
COMPANIES
8. Guarantee of certain loans
9. Financial conditions of guarantees
10. Rationalization conditions of guarantees
PART IV-RATIONALIZATION OF AIRCRAFT FLEETS
11. Definitions
12. Determination by Minister of overall aircraft capacity
13. Conditional obligations of Commission and Company
14. Consultation between airlines and Director-General
15. Minister to accord Commission and Company equal treatment
AIRLINES EQUIPMENT ACT 1958 - SECT. 1.
Short title.
SECT
AIRLINES EQUIPMENT ACT 1958
An Act to make provision with respect to Financial and Rationalization
Arrangements in connexion with the Equipment of certain Domestic Airlines.
PART I-PRELIMINARY
Short title amended; No. 32, 1918, s. 2.
1. This Act may be cited as the Airlines Equipment Act 1958-1973.*
AIRLINES EQUIPMENT ACT 1958 - SECT. 2.
Commencement.
SECT
2. This Act shall come into operation on the day on which it receives the
Royal Assent.*
Section 3 repealed by No. 216, 1973, s. 3.
* * * * * * * *
AIRLINES EQUIPMENT ACT 1958 - SECT. 4.
Definitions.
SECT
4. In this Act, unless the contrary intention appears-
''the Commission'' means the Australian National Airlines Commission;
''the Company'' means Ansett Transport Industries Limited, and includes
every company or firm in which Ansett Transport Industries Limited has from
time to time a controlling interest and which owns or operates aircraft.
AIRLINES EQUIPMENT ACT 1958 - SECT. 5.
PART II-FINANCIAL ARRANGEMENTS IN RELATION TO THE AUSTRALIAN NATIONAL
SECT
AIRLINES COMMISSION
5.*
* * * * * * * *
AIRLINES EQUIPMENT ACT 1958 - SECT. 6.
Borrowing by the Commission for the purchase of a Lockheed Electra aircraft.
SECT
6. Notwithstanding anything contained in section thirty-one of the
Australian National Airlines Act 1945-1956, as amended by this Act, the
Commission may borrow, in addition to the amounts that it is authorized to
borrow under that section, the moneys (not exceeding the equivalent of Three
million dollars in the currency of the United States of America) that the
Treasurer is, under the Loan (Australian National Airlines Commission) Act
1958, authorized to lend to the Commission in connexion with the purchase by
the Commission of a Lockheed Electra aircraft and related spare parts and
equipment.
AIRLINES EQUIPMENT ACT 1958 - SECT. 7.
Purchase by the Commission of a further Lockheed Electra aircraft from Qantas
Empire Airways Limited.
SECT
7. (1) The purchase by the Commission from Qantas Empire Airways Limited of
one of the five Lockheed Electra aircraft referred to in the loan agreement a
copy of which is set out in the Schedule to the Loan (Qantas Empire Airways
Limited) Act 1958 is approved, and the Commission may, without prejudice to
its powers of borrowing moneys, accept credit from Qantas Empire Airways
Limited up to an amount not exceeding the equivalent of Two million two
hundred and fifty thousand dollars in the currency of the United States of
America in connexion with the purchase.
(2) Nothing in the Loan (Qantas Empire Airways Limited) Act 1958 shall be
deemed to prevent Qantas Empire Airways Limited from selling to the Commission
the aircraft in relation to which the last preceding sub-section applies.
AIRLINES EQUIPMENT ACT 1958 - SECT. 8.
PART III-FINANCIAL ARRANGEMENTS IN RELATION TO AUSTRALIAN NATIONAL
AIRWAYS PROPRIETARY LIMITED AND CERTAIN OTHER COMPANIES
SECT
Guarantee of certain loans.
8. (1) In order to further the objects and purposes referred to in the
recitals to the agreement approved by the Civil Aviation Agreement Act 1952,*
the Treasurer may, on behalf of the Commonwealth, at the request of Ansett
Transport Industries Limited and subject to the conditions required by this
Part-
(a) for the purpose of enabling the purchase by Ansett Transport Industries
Limited or Australian National Airways Proprietary Limited of two Lockheed
Electra aircraft and related spare parts and equipment, guarantee the
repayment of, and the payment of interest on, a loan or loans of an amount or
amounts not exceeding in the whole the equivalent of Three million pounds made
to either of those companies, each such loan being repayable within a period
not exceeding seven years from the date on which the loan moneys are received;
and
(b) for the purpose of enabling the purchase by Ansett Transport Industries
Limited or Australian National Airways Proprietary Limited of six Fokker
Friendship aircraft and related spare parts and equipment, guarantee the
repayment of, and the payment of interest on, a loan or loans of an amount or
amounts not exceeding in the whole the equivalent of Two million pounds made
to either of those companies, each such loan being repayable within a period
not exceeding six years from the date on which the loan moneys are received.
(2) The guarantee of a loan or loans under this section does not affect the
rights of Australian National Airways Proprietary Limited under clause three
of the agreement approved by the Civil Aviation Agreement Act 1952.*
AIRLINES EQUIPMENT ACT 1958 - SECT. 9.
Financial conditions of guarantees.
SECT
Amended by No. 216, 1973, s. 3.
9. For the purposes of the protection of the financial interests of the
Commonwealth, the Treasurer shall not give a guarantee under the last
preceding section in respect of a loan unless-
(a) the moneys are borrowed upon reasonable terms and conditions;
(b) proper security is 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 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, mortgaged or charged except by way of 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 a Territory except after the furnishing of such security as
the Treasurer may require; and
(e) such other conditions as the Treasurer thinks necessary are fulfilled.
AIRLINES EQUIPMENT ACT 1958 - SECT. 10.
Rationalization conditions of guarantees.
SECT
10. (1) The Treasurer shall not give a guarantee under this Part unless
undertakings are given to the satisfaction of the Minister for compliance by
the Company with the obligations specified in section thirteen of this Act so
long as any moneys in respect of which a guarantee is given under this Part
remain unpaid or any liability to the Commonwealth arising out of such a
guarantee remains undischarged and such other undertakings are given by the
Company as the Minister considers necessary.
(2) While the Company is subject to the obligations specified in section
thirteen of this Act, the Commission is, by force of this Act, also subject to
those obligations.
AIRLINES EQUIPMENT ACT 1958 - SECT. 11.
Definitions.
SECT
PART IV-RATIONALIZATION OF AIRCRAFT FLEETS
11. In this Part, unless the contrary intention appears-
''aircraft capacity'', in relation to aircraft, means, in respect of a
period, the number of revenue traffic ton-miles capable of being performed by
the aircraft in the period;
''competitive route'' means a route over which air services are operated
both by the Commission and by the Company, and ''non-competitive route'' means
any other route;
''revenue load factor'', in relation to an aircraft, means, in respect of a
period, the percentage that the revenue value of the work performed on the
flights made by the aircraft during that period is of the revenue value of the
work that could have been performed on those flights, ascertained in
accordance with the equation-
A = 100 (B + CD)
--------------------
E
where-
A is the revenue load factor;
B is the number of passenger ton-miles performed by the aircraft in the
period, based on a passenger weight (including free baggage) of two hundred
pounds;
C is the non-passenger revenue traffic ton-miles performed by the
aircraft in the period;
D is the ratio of the revenue yield per ton-mile of non-passenger
traffic to the revenue yield per ton-mile of passenger traffic; and
E is the total revenue traffic ton-miles for which the aircraft could
have been used on the flights performed in the period;
''ton'' means two thousand pounds weight;
''traffic'' means traffic in respect of passengers, cargo and mails.
AIRLINES EQUIPMENT ACT 1958 - SECT. 12.
Determination by Minister of overall aircraft capacity.
SECT
12. (1) The Minister shall, from time to time, in relation to a specified
future period-
(a) estimate the total traffic on-
(i) each of the competitive routes;
(ii) the non-competitive routes of the Commission; and
(iii) the non-competitive routes of the Company; and
(b) determine the maximum aircraft capacity of the aircraft required by the
Commission and the Company, respectively, for the purposes of-
(i) carrying one-half of the total traffic estimated by the Minister in
respect of the competitive routes; and
(ii) operating its services on non-competitive routes.
(2) For the purposes of this section, the Minister shall have regard to-
(a) rates of traffic increase;
(b) the types, speeds and reasonable extent of utilization of the aircraft
proposed to be used;
(c) the revenue load factor that would be the optimum revenue load factor
for the operation of aircraft on each route during the period concerned, due
consideration being given to the interests of the public and the maintenance
of a proper relation between revenue and costs;
(d) the necessity for the overhaul and maintenance of aircraft;
(e) the necessity for having aircraft available to meet emergency
situations;
(f) aircrew training requirements;
(g) any services operated otherwise than by the Commission or the Company
on non-competitive routes; and
(h) any other factors affecting the stability of the domestic air transport
industry.
(3) Where the Minister makes an estimate and a determination under
sub-section (1) of this section, he shall, not less than twenty-eight days
before the commencement of the relevant period, give notice of the terms of
the estimate and of the determination to the Commission and to Ansett
Transport Industries Limited and shall, in the notice, specify the portion of
the determined aircraft capacity that is related to traffic on the competitive
routes.
AIRLINES EQUIPMENT ACT 1958 - SECT. 13.
Conditional obligations of Commission and Company.
SECT
13. The obligations that are, in accordance with section ten of this Act, to
become applicable to the Company and the Commission upon the giving of a
guarantee on behalf of the Commonwealth under section eight of this Act are
the following:-
(a) where the Minister has made a determination under the last preceding
section in relation to a period-an obligation not to provide, on the
competitive routes, during that period, air services capable of performing a
number of revenue traffic ton-miles in excess of the aircraft capacity
specified in respect of the competitive routes in the notice under sub-section
(3) of the last preceding section;
(b) where, at any time during a period in relation to which the Minister has
made a determination under the last preceding section, the Minister-
(i) notifies the Commission or Ansett Transport Industries Limited that
he is satisfied that the aircraft owned, operated, or otherwise available for
use, by the Commission or the Company, as the case may require, exceed the
aircraft required to provide, in that period, the aircraft capacity determined
in relation to the Commission or the Company, as the case may be, and to
fulfil any arrangements for the use by an operator other than the Commission
or the Company of any aircraft operated by the Commission or the Company, as
the case may be; and
(ii) directs the disposal of aircraft to a specified extent (being the
extent which the Minister considers necessary to eliminate the excess),
an obligation to comply with the direction within the time specified by
the Minister;
(c) an obligation not to purchase, lease or otherwise obtain the use of any
aircraft unless the Minister has certified in writing that, in his opinion,
the obtaining of the aircraft will not result in the Commission or the
Company, as the case may be, having the use of any aircraft in excess of the
aircraft required to provide the aircraft capacity determined from time to
time under the last preceding section, and that, in his opinion, the obtaining
of an aircraft of the type proposed to be obtained will not, having regard to
the types of aircraft operated by the Commission and the Company or in respect
of which any other certificate under this paragraph has been or is proposed to
be issued, be detrimental to the stability of the domestic air transport
industry; and
(d) an obligation to furnish to the Minister, within such times as the
Minister specifies, such information in respect of traffic as the Minister
requires.
AIRLINES EQUIPMENT ACT 1958 - SECT. 14.
Consultation between airlines and Director- General.
SECT
14. (1) The Director-General of Civil Aviation may, from time to time,
convene conferences to be attended by representatives of the Department of
Civil Aviation, the Commission and the Company, for the purpose of considering
matters relevant to the making of estimates and determinations by the Minister
under this Part.
(2) The Director-General shall report to the Minister any conclusions
arrived at or views expressed at a conference held in pursuance of this
section, and the Minister shall, before making an estimate or determination
under this Part, give full consideration to any such conclusion or views.
AIRLINES EQUIPMENT ACT 1958 - SECT. 15.
Minister to accord Commission and Company equal treatment.
SECT
15. The Minister shall not, in the exercise of his powers under this Part,
unfairly discriminate in favour of the Commission or the Company as against
the other.
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AIRLINES EQUIPMENT ACT 1958 - NOTES
NOTES
1. The Airlines Equipment Act 1958-1973 comprises the Airlines Equipment Act
1958 as amended by the other Act specified in the following table:
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Number Date of
Act and year Date of
Assent commencement
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Airlines Equipment Act
1958 No. 70, 1958 10 Oct 1958 10 Oct 1958
Statute Law Revision Act
1973 No. 216, 1973 19 Dec 1973 31 Dec 1973
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2. Section 5 amended the Australian National Airlines Act 1945-1956 and the
amendments, as amended by subsequent Acts, have been incorporated in the print
of the Australian National Airlines Act 1945-1973.
3.-S. 8-Now cited as the Airlines Agreements Act 1952-1973.