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Aviation History
1949
1949 - 1747.PDF
and AIRCRAFT ENGINEER First Aeronautical Weekly in the World; Founded 1909 a No. 2130. Vol. LVI. THURSDAY, 20 OCTOBER 1949. EDITORIAL DIRECTOR G. GEOFFREY SMITH, M.B.E. EDITOR MAURICE A. SMITH, D.F.C. ASSISTANT EDITOR H. F. KING, M.B.E. ART EDITOR JOHN YOXALL Editorial, Advertising and Publishing Offices : DORSET HOUSE, STAMFORD STREET, LONDON, S.E.I. Telegrams: Flightpres, Sedist, London. Telephone : Waterloo 3333 (60 lines). Branch Offices : COVENTRY 8-10, Corporation Street. Telegrams : Autocar, Coventry. Telephone : Coventry 5210. BIRMINGHAM, 2. King Edward House, New Street. Telegrams : Autopress, Birmingham. Telephone : Midland 7191 (7 lines). MANCHESTER, 3 260, Deansgate. Telegrams : Iliffe, Manchester. Telephone : Blackfriars 4412 (3 fines). Deansgate 3595 (2 lines). GLASGOW, C.2 26b, Renfield Street. Telegrams : Iliffe, Glasgow. Telephone : Central 4857. SUBSCRIPTION RATES Home : Twelve months. £3 Is. Od. Six months, £1 10s. 6d. Overseas : Twelve months, £2 18s. 6d. BY AIR : To any country in Europe (except Poland). Twelve months. £5 Is. Od. Six months, £2 10s. 6d. Canada and U.S.A. Six months, R16 In this issn«k: Gas Turbine Fuel Systems 512 Ambassador in the air 523 American Notebook - 528 Corporations' Accounts 532 Los Angeles Helicopter Mail Service 536 Commercial PrudenceI N the reports of the three British Airways Corporations there is an element of self- satisfaction—perhaps permissible—that the annual deficits are gradually being reduced. The combined deficit is the lowest srnce the nationalized corporations were established; more passengers have been carried, more capacity ton-miles and revenue ton-miles have been flown and, except in the case of B.S.A.A., staff to achieve this expansion has been reduced. The result has been improved efficiency and a reduction in cost per capacity ton-mile flown. Nevertheless, the deficit is still , very large—larger in each case than was allowed for in the Exchequer grant and there is little hope that the current year will end with a balance on the right side of the £5,500,000 maximum loss set by Lord Pakenham. Already the accumulated loss • over three years exceeds £31,000,000 and the first year of profit is not even in sight. It is noticeable that B.O.A.C., with the largest deficit, increased route mileage during the period by only 4.5 per cent. Usable capacity increased by 33.8 per cent, * ' and yet the revenue-producing proportion of this capacity decreased by 6.6 per cent compared wkh the previous year. There is a significant relationship between these three percentages; in fact, together, they reflect a policy of increasing frequencies on established routes, regardless of demand. The B.O.A.C. report reiterated that the main reason for its loss of nearly six millions was the enforced operation of uncompetitive aircraft in the Eastern Division. If frequencies in 1948-49 had been prudently limited, a higher load factor would have * resulted and the deficit, in B.O.A.C. at least, would have been smaller. There is no virtue in flying uneconomically-loaded aircraft merely to increase the usable capacity- ,< load mileage. The same criticism can scarcely be made of B.E.A., although the unused capacity in the past two years has remained significantly stable, and at no '< period, since March, 1947, at least, has the demand exceeded the capacity. In fact, during the peak period and on the increased services provided, there was more unused capacity on both Continental and internal services than at any other period- Staff, Revenue, Expansion The cuts in staff, and the resultant lower ratio of staff to capacity-load in both B.O.A.C. and B.E.A., has confirmed the impression of overstaffing prevalent at the time of formation. B.S.A.A., on the other hand, increased staff in contemplation ot new sen-ices which, owing to the withdrawal of the Tudors, were not realized. This Corporation anticipates already that the current financial year will inevitably show unsatisfactory results, as the redeployment of aircraft, made necessary by amalgama- tion with B.O.A.C., will not begin to take effect until the first quarter of 1950. After that, the Corporation believes, its financial contribution should steadily improve. It was, surely, towards this end that the amalgamation, agreed by the M.C.A. and both Corporations, and now in train, was initiated. In existing circumstances, with the Government responsible for all aspects of civil aviation, the only appreciable sources of revenue are the Airways Corporations. Little return can be expected from the immense capital outlays for airport develop- ment, navigation and communication facilities. Expansion is an obvious necessity, but the wisdom of spending public money by increasing frequencies on established routes with uneconomic aircraft is not readily apparent for under these circumstances every mile flown is a further drain upon the taxpayer' There is optimism that once B.O.A.C. and B.E.A. are equipped with turbine aircraft they will enjoy an advantage over their competitors; but their com- petitors may likewise buy British aircraft and the advantage will then have been short lived Such aircraft, however, will not be introduced for at least three more vears and with this in mind it is surely insufficient merely to reorganize and cut overheads Operations should be extended into new territories, but the general policy of expansion during the waiting period must necessarily be tempered with the determination to reduce the burden upon public funds.
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