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Aviation History
1958
1958-1- - 0948.PDF
956 FLIGHT CIVIL AVIATION . . . Dr. Cherington foresees "a downward pressure on prices" ifcapacity is to be filled satisfactorily. The peak problem that will arise from this development will demand an extensive applica-tion of off-peak reductions, possibly accompanied by an increase in certain on-peak fares. But to introduce such flexibility willrequire a reconsideration of C.A.B. policy. The Investment Bankers Association of America have chosenan appropriate moment to enter the fray, and the paper pre- sented by their Aviation Securities Committee at the Association'srecent annual conference at Miami left no doubt about their fears concerning the airline industry's indebtedness. At the time of lastyear's conference, the airlines' shortage of funds amounted to $373m. By early summer this figure had reached $764m, butin recent months the level had dropped (primarily through PanAm arranging loans worth $130m) and by early November stood at$510m. T.W.A. accounts for two-thirds of the latest total, while most of the balance is needed by the medium-sized and smallerdomestic trunks. Having themselves invested extensively in the airline industry in the past few years, the bankers are naturallyreluctant to blame the carriers for the present financial embarrass- ment and instead put the blame on "C.A.B .-decreed ever-expand-ing competition." No mention is made of the fact that the airlines were never forced by the Board to take over new routes but indeedfell over each other in pushing for permission to operate new, competitive services. EXCHANGING EQUIPMENT T ATEST symptom of the growing business in used-airliner-•—' disposals is the formation of an aircraft exchange in New York. To be known as Aircraft Exchange, Inc., it expects to openoffices in London as well as in New York early in the new year and will deal with any transport aircraft of over 20,000 lb a.u.w. Members will be able to forward quotations (for sale, purchaseor lease) until each Tuesday afternoon, when the market will close to allow the various offers to be matched. The followingafternoon the interested parties will be informed of any relevant developments and on each Thursday a weekly market report willbe issued to members. The exchange, says Aviation Daily, will be operated on aco-operative basis and will draw its members from manufac- turers, airlines, investors and various official bodies. RobertHelliesen is president, and other leading officers are Charles Biondi, vice-president; Dr. Herbert Dorau, treasurer; AlfredTurino, secretary; and R. V. Hudnut, E. A. Merkle and Morton Wolovsky, Board members.The U.S. Government, following suggestions put forward last June by Dr. Paul Cherington, is also engaged on a close studyof the used-airliner market, and the Economic Division of the Air Co-ordinating Committee is expected soon to present areport on this subject. CHALLENGE TO B.O.A.C. —1 CINCE the Eagle group of companies formed a Bermudan^ associate in 1957, the operations of this concern—Eagle Airways (Bermuda) Ltd.—have steadily consolidated. DailyViscount services between Bermuda and New York have been operated with considerable success since May, and approvalhas been granted for this service to be extended to Montreal, Baltimore and Washington. Eagle have shown how, by registeringa company outside the United Kingdom, the expansion of inde- pendent scheduled operations can be achieved. Now comes news that the Bermudan Eagle company is seekinga licence to operate a service southwestwards from Bermuda towards the Caribbean—to Jamaica and the Bahamas. Thisapplication, as might be expected, is being strongly opposed by B.O.A.C. and their B.W.I.A. associate, the last-named company The Prime Minister recently flew south by Silver City Heron from Warton, Lanes, after opening the new Preston motorway. Mr. Macmillan's flight was scheduled to go to Gatwick, where he would have been received by Silver City's chairman, Mr. E. C. Mekie, but fog at Gatwick necessitated diversion to Ferry field having the support of the Federal Government of the WestIndies (which last month opposed a previous application by the Bermudan Eagle company to operate the Bermuda - Barbados -Antigua - Trinidad route). The Eagle application to operate a service to Jamaica washeard before the Jamaican Air Transport licencing authority; and Mr. Harold Graham, president of the Bermudan Eaglecompany, said that the service would be of "immense benefit to Jamaica's tourist industry." Only the twice-weekly B.O.A.C.flight between Jamaica and London covered the route, he said, and the greater part of the seats were reserved for through-passengers, only "residuajl' seats being available at the last moment to local would-be travellers. He added that the route ;was not operated by B.W.I.A. The outcome of the hearing was not, as Flight went to press, known. 'Further expansion of Eagle activities is suggested by a recent application of the Bermudan associate to the U.K. Air TransportAdvisory Council to operate "a normal scheduled service with DC-6A/B and Britannia aircraft . . . between Bermuda andLondon with an intermediate technical stop at Gander and/or Shannon or else the Azores and/or Lisbon at an initial frequencyof three return flights weekly increasing later to seven return flights weekly for ten years from the date of approval."In other words, having established their Bermudan associate, Eagle see in this company the opportunity of legally challengingB.O.A.C. on an overseas route. Whether or not the A.T.A.C. approves the application remains to be seen; there is no doubtthat it will be strongly opposed by B.O.A.C. The interesting aspect of the application is that it has the full support of theBermudan government, whose flag the applicant flies. .-.. A CHALLENGE TO B.O.A.C. —2 THE prospects of British holiday-makers being able to flyby Britannia to New York and back, having spent a fortnight there in a good hotel at an inclusive charge of £165, seems soremote as to be a mere exercise in wish-fulfilment. Yet this is the plan now being put forward by Horizon Holidays, Ltd., the U.K.travel agent, and Mr. Freddie Laker's independent company Air j Charter. 1The two concerns have jointly applied to the Air Transport | Advisory Council to operate, as from March 1, 1959, one return |I.T. flight weekly between London Airport (or Gatwick) and New | York, frequency to be eventually increased to five services per 3week. This application has still to be considered by the Air Trans- | V.O.R. installations—eleven in all—hove been ordered for distribution •: at selected points on the U.K. airways system. They have been purchased | from Marconi (an example of their V.O.R. transmitter is seen here) bf | the M.o.S. on behalf of the Ministry of Transport. The purchase, soy | Marconi, "follows an exhaustive evaluation of V-O.R. equipment1 *
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