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Aviation History
1920
1920 - 0687.PDF
JULY I, 1920 number of miles covered, or of the number of hours flown, has been discussed, and we have had before us details of the French scheme in operation which is based on this principle. We have been forced to the conclusion that any such scheme of grants is fundamentally unsound, as the grants can be earned without any direct return to the State or community, either by way of experience gained, useful work performed, development of more efficient machines or establishment of regular air routes. We have, therefore, discarded the policy of giving grants on such a general basis. We have also considered the advisibility of making the pay- ment of a grant dependent upon the carriage of a guaranteed load of mails within a fixed maximum time, but have found the practical application of such a system too difficult to warrant its adoption. This method has the further grave defect that it might often involve the State in the payment for certain services which might not, in fact, have been performed. We have laid down, therefore, as a principle that any grant must be in return for useful work performed, such as the acceleration of mail transport, or for services productive of valuable experience. We have considered whether these requirements could not be met by an arrangement under which the State set aside for carriage by air some or all of the mail matter on a specified route or routes and invite recognised firms to tender for the work on stated terms. This method is the one which we have already recommended for application to the Cairo-Karachi route.* After due consideration we have been compelled to decide against the extension of this method to the experi- mental services which we contemplate between this country and the Continent. The distrance betwen London and Paris is too short and the saving in time insufficient to induce the General Post Office to dispense with existing mail services in favour of transport by air. We are advised that the mail contracts which would be of use to the Post Office would be for such routes as London to Rome, where the saving of a clear business day would be practicable. But on these routes we are faced with numerous difficulties. The weather condi- tions throughout the year are far more treacherous than on the Cairo-Karachi route, international questions are still complicated, and the development of air transport has scarcely attained such perfection as to make it possible to rely on the .regularity in present conditions of such a service. We are consequently of opinion that any scheme for the assistance of civil aviation must permit of gradual develop- ment and consolidation stage by stage. Bearing in mind these two factors, namely, the difficulties in the way of the immediate inauguration of long-distance Services and the present uneconomic position with regard to the carriage of mails over short distances, we have tried to devise a scheme which, while ensuring the utmost economy on the part of the Government, will assist those undertakings which, by the reliability of their service, by the public support that they are able to secure, and by their economic management prove themselves to be most worthy of financial assistance by the State. f 8. Scheme of temporary State Assistance recommended.— The scheme which commends itself to us limits State financial assistance to a maximum sum agreed beforehand, and makes the amount of the individual grants to Transport Companies conditional on the regularity of the service and proportional to the actual amount of income received from the public using the service, i.e., to the actual work done and useful experience gained. Moreover, we feel strongly that the relationship between air transport companies and the General Post Office should be placed on a purely commercial basis, and that transport companies should begin dealing with the Post Office, when seek- ing mail contracts, on an equal footing with railway and steamer companies, thus avoiding the confusion of State assistance with payment for work done. We believe that the basis upon which our recommendations are framed will assist in making this possible. We, therefore, make the following recommendations :— (1) That direct assistance should be given, limited to a maximum sum of £2 50,000, within the two financial years 1920-21 and 1921-22, and that payments to. companies operating on approved routes should be calculated on the basis of 25 per cent, of the total certified gross revenue of each company (exclusive of the Government grant) earned by the carriage of passengers, mails or goods. No differentiation should be made with regard to the class of load carried, and the payments should be allotted on the return for each period of three months treated separately, * Cmd. 449. " Report on Imperial Air Routes." provided that the company can show that, on a minimum of 45 days in each period of three months (or such other factor of regularity as may be determined later by the Air Ministry), flights have been completed in both directions by aircraft of British manufacture and with British engines within an agreed maximum number of hours. For the purpose of checking the revenue earned, it will be necessary for the company to submit to departmental inspec- tion, when required, all the company's books, receipts and other documents in support of their claim. A further condition of the grant should be that the details of the cost of maintaining and operating the service should be produced annually for inspection by the Government. (2) That the " approved " routes should be :— (a) London to Paris and approved extensions therefrom. (b) London to Brussels and approved extensions there- from. (c) An approved route, as, for instance, England- Scandinavia, on which the possibilities of a service employ- ing flying boats or " amphibian " machines, or a mixed service of sea and land aircraft, can be demonstrated. The maximum time allowed for journeys between London and Paris, and London and Brussels, should be four hours from aerodrome to aerodrdme (or such other time limit as may be determined later by the Air Ministry) ; and the maximum time allowed for journeys on the extended routes should be proportionate. (3) That any company intending to run on the routes and notifying the Air Ministry of this intention would become an " approved " organisation by fulfilling the conditions laid down as to regularity and speed of service. (4) That a grant for an air service in this country should not at present be made. However, if satisfactory proposals are put forward for internal services, or for a service between Great Britain and Ireland, the extension of the principle of State assistance for this purpose may require further con- sideration at a later date. . ••••.'.:•'•,.:-•. April 19, 1920. WEIR [Chairman). •:•: ' J. STEVENSON (Vice-Chairman). L. BAIRSTOW. SIDNEY A. BOULTON. :'••••.. - J. T. C. MOORE-BRABAZON. ' INCHCAPE. :. ';;,:.; " W. A. ROBINSON. H. WHITE-SMITH. F. H. SYKES. , ;« F. G. L. BERTRAM (Secretary). ' : I sign the Report but consider that if the grant is limited to two years and is only payable on earnings it should not be limited to £250,000. J. STEVENSON. In signing the Report I endorse the rider put forward by Sir James Stevenson. - .-: -1 H. WHITE-SMITH. I sign the Report, but in the present state of the country's finances I am not in favour of subsidising any aviation Com- pany. INCHCAPE. Report by Air-Marshal Sir Hugh M. Tr#nchard, Bart., K.C.B., D.S.O. :t 1. Although I am in agreement with a large part* of the Majority Report I regret I am unable to endorse the recom- mendations contained in paragraphs 6 and 8, fcr the following reasons :— (a) The basic question at issue, namely, what is the precise object of keeping Civil Aviation alive, does not appear to have been adequately examined. (fc) It seems to me that the Committee too lightly brush aside the fundamental objections to the principle of subsidies, and the evil consequences arising from them. (c) Sufficient consideration does not appear to have been given to the statement in the Terms of Reference that the Committee must bear in mind the need for the utmost economy. (<f) I am not satisfied at present that Civil Aviation, on the basis of the indirect assistance so far recommended, has failed, as paragraph 6 of the Majority Report implies. I do not think it has had time to prove its value. 2. With regard to (a) and (b), is Civil Aviation to be main- tained for commercial purposes only ? Or is it required to provide a reserve for Imperial Defence ? Or again, is it necessary for both purposes ? If the reason is commercial, then I am of opinion that the policy of subsidies stands self-condemned. It is not a system 687
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