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Aviation History
1921
1921 - 0419.PDF
JUNE 23, 1921 THE CROSS-CHANNEL AIR SERVICES Subsidy Revised and Extended THE Air Ministry las.t week issued a communique setting out new terms upon which the State proposes to assist the cause of commercial flying, embodying the proposals which emanated from the Committee appointed by the Secretary of State for Air, to make recommendations for ensuring the maintenance of air-transport on cross-Channel routes. These have been adopted by the Air Council, and have received the approval •of the Treasury. The intention of the Air Council is that there may be no break in the services on the London-Paris routes being operated by Messrs. Handley Page, Ltd., and Messrs. S. Instone and Co., Ltd., under the present temporary scheme, and the operation of services on the route by " approved " firms under the new scheme. The recommendations which are now to come into operation are that :— a. Firms should be " approved " by the Air Ministry on certain conditions for the operation of agreed cross-Channel routes. b. Orders should be placed by the Air Ministry for aero- planes of modern commercial types to be hired out to " approved " firms. c. A subsidy of 25 per cent, should be paid by the Air Ministry on an " approved " firm's gross earnings. Applications are now invited from those who wish to be recognised as " approved " firms by the Air Ministry and to participate in the scheme described below. With the approval of the Lords Commissioners of H.M. Treasury, a sum of approximately ^200,000 per annum will be set aside from Civil Aviation votes for three years. This sum of £600,000 (including expenditure on the temporary scheme now in operation, which will not exceed ^50,000) will be used for the following purposes :— a. The Air Ministry will order a limited number of machines for transport purposes, embodying the latest improvements suggested by experience. These machines will be let out on hire to " approved " firms to augment their fleets. b. The Air Ministry will grant subsidies during the same period of three years on the basis of 25 per cent, on an " approved " firm's gross earnings operating on any of the following routes : London-Paris, London-Brussels, Lond >n-Amsterdam. (Further routes may be approved at a ater date.) under the conditions referred to below, with the proviso that when in any financial year of the firm concerned the net profits (inclusive of subsidies) arrived at after full allowance for depreciation and any other charges agreed to by the Air Ministry would permit a payment of over 15 per cent, of the total subscribed cash capital to be employed on these services, the balance in excess of the 15 per cent, shall be refunded to the Air Ministry up to the limit of the amount received as subsidy. The Air Council propose that the following regulations should govern the hiring out of machines :— 1. The number of machines to be ordered by the Air Ministry will be limited by the amount of money available. 2. The specifications of the machines to be ordered by the Air Ministry will be drawn up after consultation with repre- sentatives of the firms approved. 3. The machines after completion, and after having passed the preliminary trials satisfactorily, will be available for hire under the.conditions stated below. 4. Firms operating these machines will be required to insure them, in the name of the Secretary of State for Air, at a value to be stated in each case by the Air Ministry, against loss or damage by accident resulting from operation in addition to normal insurance against fire, etc., and to maintain them in an airworthy condition subject to fair wear and tear. 5. a. Firms operating will be required to pay the Air Ministry a monthly rental equivalent to i\ per cent, of the cost of the machine. . . b. After 30 such payments have been made the machineswill become the property of the firms. The conditions under which firms may be accepted by theAir Ministry as " approved " are as follows :— i. a. Personnel.—The companies, directors, shareholders,pilots, members of the crews, and the mechanics employed in England must be of British nationality.* b. Aircraft, Engines, etc.—The aircraft and engines must -be of British design and manufacture, and the aircraft must be of British nationality.* r. Regularity of Service.—Forty-five completed singlejourneys in each direction on any one route during each period of three months are necessary in order that a firm may qualifyfor the subsidy, but on any one day flights need not be made in both directions, and only one flight in the same directionwill count as a qualifying flight. d. Speed.—All flights on the routes so far approved mustbe completed within four hours to count for qualifying purposes. ii. Tariff.—The tariff charges and any amendments theretomust be*approved by the Air Ministry. iii. Accounts.—a. Approved firms will be required to renderto the Air Ministry monthly statements showing their gross earnings for the month on each route operated by them. Inaddition with each such statement will be required a certifi- cate to the effe'ct that no rebates of any kind have been granted,or are due, except as specified in the accounts. b. Payment, on account, not exceeding 20 per cent, of thefirm's gross earnings from the carriage of passengers, goods, parcels and mails will be paid by Air Ministry monthly,subject to final verification of the information supplied by the firm and subject to annual adjustment of the amountspaid by the Air Ministry so that the total annual pay- ment as subsidy will be 25 per cent, of the firm's grossearnings. c. Approved firms will be required to keep their accountsin such a form that the gross earnings and running costs of individual machines on individual flights can readily be "identified. An annual balance-sheet certified by auditors, togetherwith profit and loss accounts and records showing full details of cost of starting, maintaining and operating the services for .•which the subsidy is claimed, must be produced for examina- tion by the Air Ministry, who will also have access to thefirm's books, receipts and other documents in support of their , claim before the final sum due for the year will becomepayable. * 1 • The Air Ministry will provide :— • • • a. Meteorological information and ground wireless services, .free of charge, at the Government aerodromes. b. Terminal and emergency aerodromes in Great Britain,together with all aerodrome facilities, including lighting, etc., so far as the Air Ministry funds permit, subject to the paymentof the recognised charges. The Air Ministry invite those who are interested in thecommercial development of aerial transport services to submit proposals to the Secretary (C.G.C.A.), Air Ministry, Kingsway, -.W.C. 2, for consideration not later than Monday, Aug. 1, next. Proposals submitted should state the amount of subscribedcash capital that will be employed on the undertaking, the < number and types of machines proposed to be operated,the number of pilots proposed to be employed, together with information concerning the previous experience of the pro-moters and management in aerial transport and any other L information which may help the Air Council in the selection ;of a limited number of firms that could be assisted within the limits of the money available. The Air Council reserve the right to accept or refuse anyproposal submitted. . •• / • ; • Unless under special conditions where permission has been given in writing. The Oxford and Cambridge Air Race. PLANS for the Oxford and Cambridge Air Race have now definitely materialised, and it seems that this event, which is to take place on July 16 (Aerial Derby Day) at Hendon, has every prospect of being as popular in the world of sport as its older and aquatic prototype. It is to be a cross-country team race, each University putting up a team of three pilots, all flying S.E. 5 machines. The actual course to be flown is to be kept secret until the morning of the race, but it will be a circuit of about 30 to 40 miles, which is to be covered three times, with Hendon aerodrome as the starting point. The machines will be lined up and will start all together, just before the Aerial Derby. As in ordinary cross-country team racing, the winner will be the team obtaining the minimum aggregate total of place numbers. It will be seen, therefore, that the race should provide plenty of excitement, and is thoroughly " sporty." It should be mentioned that the Royal Aero Club is bearing the whole of the expenses, including machines, insurance, petrol, etc. 419 D 2
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