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Wednesday, 25 November 1959


Mr Bury y asked the Minister representing the Minister for Civil Aviation, upon notice -

1.   Does the item " Unearned Revenue, £219,862 ", which appears in the balance-sheet of Trans-Australia Airlines of the year 1958-59, represent passenger and freight bookings paid for in advance; if not, what is its nature and is it excluded from revenue shown in the profit and loss account for 1958-59?

2.   Does the balance of payments in respect of aircraft amounting to £1,300,000 which is mentioned in the third last paragraph on page 32 of the fourteenth annual report of Trans-Australia Airlines, refer to payments due in the near future; if so, from what source is it proposed to meet this obligation?

3.   Does Trans-Australia Airlines attach any significance to the considerable excess of current liabilities over current assets as shown in the balance-sheet?

4.   Is this position expected to be a temporary one?

5.   What interest charges were Trans-Australia Airlines required to meet on loans for purchase of aircraft?

6.   What was the estimated loss due to the " rolling " strike by airline pilots in November, 1958?


Mr Townley - The answers to the honorable member's questions are as follows: -

1.   Unearned revenue appearing in the balancesheet as at 30th June amounting to £219,862 represents passenger and freight bookings paid in advance and is excluded from the revenue shown in the profit and loss account for 1958-59.

2.   Payments in respect of aircraft amounting to £1,300,000 will be met during 1958-59. The funds for these payments will be provided from loan moneys and overdraft accommodation arranged in connexion with the purchase of aircraft within the provisions of the Australian National Airlines Act 1945-59, the Airlines Equipment Act 1958 and the Loan (Australian National Airlines Commission) Act 1958.

3.   The relationship of current liabilities to current assets varies in different types of industry, and in the particular circumstances Trans-Aus tralia Airlines does not attach any significance to the excess of current liabilities over current assets as shown in the balance-sheet.

4.   No.

5.   For loans under the Airline Equipment Act interest charges are at the rate of 41 per cent, under the Loan (A.N.A.C.) Act (1958) 4* per cent., and on bank overdraft at negotiated rates varied from time to time in accordance with normal banking policy. As most of the loans for aircraft purchases shown in the balance-sheet were incurred at the end of the financial year, interest payments in 1958-59 were relatively small.

6.   £60,000.







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