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Aviation History
1958
1958 - 0629.PDF
FLIGHT, 9 May 1958 645 COMET 4s FOR ARGENTINA A FEW days after the Comet 4's maiden flight the Argentine**• Government ratified the contract signed between Aerolineas Argentinas and de Havilland for six Comet 4s (Flight, April 18). If ever perseverence deserved a reward, this was it; and deHavilland have now secured a firm overseas order for their Rolls- Royce Avon-powered jet airliner. The company's painstakingthree-year sales campaign has not been without its disappoint- ments. Cautious hopes in 1956 that the Capital Airlines orderwould start the export-ball rolling did not materialize; and since that date D.H.—like other British manufacturers—have been upagainst the full weight of American competition. Perhaps D.H. have had more than their share of this competi-tion, because there is not one variant of the nine types of new trunk-route transports being offered—American, French or British,turboprop or turbojet—with which the Comet 4 family has not had to compete. In addition, D.H. have had to contend withremarkable American financing arrangements—of the kind recently offered by Convair to Capital, and, more recently, byanother American manufacturer to certain Australian airlines (15 per cent down, progress payments over four years, an offer to buyback at cost price after four years, and attractive trade-in terms for existing piston fleets). That Argentina has selected the Comet despite these pressures isencouraging. With a production Comet 4 in the air, and an export order in the bag, D.H. have reason to feel happier about Cometprospects for the future. Including the orders from B.O.A.C. (19 Comet 4s) and B.E.A. (six 4Bs), and now Aerolineas Argentinas(six Comet 4s), they probably need to sell another 30 aircraft to break even. Current prospects appear to include C.P.A.L., M.E.A.and T.E.A.L.—the last-named airline, despite Australian pressure to buy Electras, being still technically in favour of the Comet 4C. Aerolineas Argentinas intend to inaugurate Comet services outof Buenos Aires early next year. It is probable that de Havilland will be able to deliver the first aircraft before the turn of this yearwithout disruption of the B.O.A.C. delivery schedule (which calls for four aircraft before the end of 1958). The Argentine airlineuses DC-6s for its overseas services. These extend to London and Amsterdam via Rio de Janeiro, Lisbon and other European cities,and to New York via Rio de Janeiro, Belem, Trinidad and Havana. The schedule between Buenos Aires and New York will be cut by Last week was an important one for the Comet 4: there was the Argentine order dis- cussed above, and the flight of the first production air- craft, right. The top picture, taken before the second flight, shows John Cunning- ham (left), chief D.H. test pilot, with Comet development test pilot Pat Fillingham. CIVIL AVIATION Comets from about 30 to about 15 hours, and the trans-SouthAtlantic service to London will be cut from about 38 hours to 22 hours.It is worth noting here the possibility that Comet 4 services out of London to South America may be operated by the Argentineairline before B.O.A.C. gets its own Comet 4s on to that route, unless there has been some contractual arrangement to thecontrary. Latest operating results available for Aerolineas Argentinas (for1956) show that about 260 million passenger-miles were carried; total capacity ton-miles flown were a little more than 46 million;overall load factor was 68 per cent. A deficit of £3.6 million was returned in the same year, and last year a Government subsidy of£4.8 million was granted. It is reported from Buenos Aires that delivery of the six Comet 4sis to be completed by March 1960. Total value of the order is officially given as £9 million, excluding spare parts. Argentineengineers and aircrews are expected at Hatfield shortly to begin training. B.E.A.'s BIG PROFIT F AST week brought melancholy confirmation of the heavy losses-I—' recently sustained by B.O.A.C. In cheerful contrast are the results for the sister Corporation. B.E.A.'s net profit havingexceeded £lm for the first time ever. Audited figures are not yet available, but B.E.A.'s preliminary estimates should, on past form,be very close to the final picture. The margin between operating revenue and operating costs appears to be in the region of £1.8m,almost double the amount shown in 1955/1956 and in 1956/1957. B.E.A. as a whole has now managed to break-even for fouryears running. But the latest year's results are not only satisfying because they show the largest profit; they also reflect great im-provements from an operating—as opposed to a financial—stand- point. In recent years B.E.A.'s net profits have been inflated by(1) low depreciation rates, (2) capital gains from sale of aircraft, (3) earnings from profitable investments (notably Alitalia). Hadit not been for the beneficial effect of these items, the net results for 1954/1955 and 1956/1957 would almost certainly have beenlosses rather than profits, and the profit for 1955/1956 would have been negligible. Capital gain and investment income last yearwas probably down on previous years, but in any case the position was so improved that a very clear profit must have been made onB.E.A.'s operational side. This spectacular improvement can be attributed to increasingproductivity. Were it not for phasing out of the Elizabethan fleet this index of efficiency would have been even better, for the dropin utilization on these aircraft meant that there was little change in average flying hours per annum over the whole B.E.A. fleet. (Theyear in which B.E.A.'s overall utilization exceeds 2,000 hr p.a. will be a worthy landmark in the Corporation's life-history.) The mainfactor leading to increased productivity was the growing share of business handled by the Viscount. The high rate of output realizedby these aircraft, coupled with a firm control over the total number Of staff employed, saw capacity grow by 15 per cent, whileemployment rose by only 5 per cent. Capacity also outpaced traffic, load-factor dropping as a resultfrom 64.5 to 63.7 per cent. This could have had an obviously detrimental effect on profitability were it not for an increase in theproportion of passenger traffic carried. It is likely that loss from the fall in load-factor was more than balanced by the improvementin average revenue rates. Lord Douglas commented on "intensification of our seasonaltraffic problem." The winter trough this year was exaggerated by the slowing-down of airline traffic being experienced in many partsof the world, and the introduction of economy-class fares across the North Atlantic is bringing unprecedented numbers of a highlyvolatile class of traffic to Europe in the form of holidaymakers from North America. As a large proportion of this traffic breaksjourney in the U.K. and proceeds by B.E.A. across the Channel,
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