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Aviation History
1961
1961 - 0673.PDF
FUGH 18 May 1961 683 carly \:-i-2 is the schedule for delivery to Cunard Eagle of two Boeing 107-420 •• the £6m order for which was confirmed on May 10. An option a tr d aircraft has been placed. Cunard Eagle say that the Boeing as cr. e" "'n v'ew °f 'ts route availability and its excellent operational charw 'istics," and that they are also "considering the purchase of VCIO aircraft for delivery late in 1964." (It is believed that an cment of British United's proposed order for fourVCIOs will be made in the very near future) private and Public Images (Continued from page 679) Last week Lord Douglas of BEA did some image-projecting in the following terms:— •• 1 mentioned two months ago that we would oppose the applicationsmade by British United Airways and Cunard Eagle Airways for net- works of services in parallel with BEA out of Gatwick and Heathrowrespectively. Since then other applications for routes in parallel with BEA have been made to the Licensing Board by two more airlines.Tradair and Overseas Aviation. We have now heard that the Licensing Board will hear the applications from all four companies togetherstarting on June 20. "BEA certainly does not propose to make its case in public in advanceof the hearing before the Licensing Board, and the Board must make its decision in the light of the evidence produced at the hearing. Mis-leading comments have, however, recently been made against BEA by certain newspapers and I feel that these inaccuracies should be correctedand answered now. "A recent newspaper headline announced that BEA had 'declaredwar' on private airline companies: it was even said we were 'attacking' the private airlines. This certainly is a topsy turvy way of looking at theposition. The question is who is attacking whom? Far from BEA making war, the companies who want some of BEA's traffic are makingwhat is in effect a kind of take-over bid: but this is a take-over bid with a difference, because in this case those who are making the offer wouldnot have to pay anything if they succeeded in the transaction! •'What the applicants to the Licensing Board in effect want is toachieve a take-over of part of a nationally-owned undertaking by private interests without payment of compensation. In such circum-stances it is only natural and right that BEA should uphold its position. and that is what we are doing. We are not making war on anyone. "We are only seeking to safeguard a most successful and profitablenational undertaking which has been built up through the efforts of its staff over the last 15 years, and to ensure the development which isessential to our continued success. We are in fact reacting in the way that any commercial enterprise (as BEA is) would react to an attemptby a competitor to filch its business. "That is why 1 recently told the Chairman of British United Airwaysthat I thought no useful purpose would be served by a further meeting between us which he had suggested, because the only object of such ameeting could have been to reach some arrangement in advance of the Licensing Board's hearings. In my opinion the future of Britishair transport is meant to be decided by the Licensing Board set up by Parliament, after full hearing of the issues involved. That is why Ithink it only proper that the Licensing Board should exercise the functions which have been prescribed for it. "BEA thrives on competition and has faced it successfully againstforeign airlines and surface transport for 15 years. Now we are going to ask the Licensing Board to confirm BtA in the proud position itholds as Britain's national flag carrier in Europe. To imply that BEA is in some way acting improperly in doing this—as has been implied—reminds me of the proverbial notice in a French zoo 'Cet animal est ires mecham. Quand on I'attaqiie, il se defend.' " In reply to Lord Douglas, Mr F. A. Laker of BUA said:— "Lord Douglas's outburst is not strictly accurate. Firstly our share-holders are largely shipowners from whom the airlines, including his. have been taking traffic for years. Secondly, our investment in aviationis already substantial and was increased only yesterday to the tune of £8 million which we are spending on British jets, so we cannot be saidto be paying nothing for our stake in the business. Thirdly, BEA's war on the independents in fact started some years ago—behind thescenes—when they successfully persuaded the IATA airlines to offer cheap fares to package-tour operators on their scheduled services.BEA were seeking the all-in-holiday traffic that the independent airlines had pioneered and built up. and it is because we feel we have the rightto protect this traffic that 13 of the routes British United have applied for are seasonal holiday services. "I cannot understand the significance of Lord Douglas's remarksabout take-over bids. We are not making a take-over bid. We are merely staking a claim to an interest in a growing industry which canonly benefit the passenger at a time when air traffic is rapidly expanding." BRITISH UNITED v. CUNARD EAGLE EVER since the beginning of the year, when British UnitedAirways and Cunard Eagle Airways applied for overlapping networks of European and UK-domestic services, it has seemed that the two independents have been wastefully duplicating their aspirations. Their adversaries—after foreign airlines—are the corporations, not each other. On January 20 last we noted (page 99), that there had been "no behind-the-scenes gentlemen's agreement [between the two independents] as to which places will be applied for"; and in review- ing this internecine independent conflict in our issue of March 16 ("British United v. Cunard Eagle," page 354) we wrote that both independents obviously appreciate that the issue is not British United r. Cunard Eagle, but British United or Cunard Eagle r. the corporations. We predicted "endless and possibly fruitless argument" between the two independents before the Licensing Board. It is not yet too late for a "behind-the-scenes gentlemen's agreement"—the gentlemen concerned being Mr Miles Wyatt of British United and Mr Harold Bamberg of Cunard Eagle. Whereas a deal between the corporations and the independents would be defeating the purpose of the Board, a deal between the two leading independents would not. How about Cunard Eagle swapping its European applications for British United's UK domestic appli- cations? The future pattern of independent influence would then be as follows:—Cunard Eagle: western routes and UK domestic; British United: Europe, southern and eastern routes. BREVITIES Mr J. B. Bentley, a former Fleet Air Arm pilot, has been appointededitor of the BALPA journal The Log. He was previously with Jliffe Transport Publications Ltd. The shareholders of Riddle Airlines have approved the merger ofKiddle with Aerovias Sud Americana. The CAB were to give a deci- sion on the proposal on May 15. An airport for Madeira is to be constructed by a Portuguese firm andshould open in about two years' time. Services to Madeira at present use the Island of Porto Santo the 40-mile connection beine completedby ship. Mr Harold L. Graham, Jr. president and director of Cunard EagleAirways (Bermuda) Ltd and vice-president and director of Cunard tagle Airways (Bahamas) Ltd. has resigned "for personal reasons."1 he resignation became effective on May 15. More details are now available about the Scandinavian Governments'Plan ;or refinancing SAS. The transport Ministers of Sweden. Norway dnd Denmark have agreed to raise the capital by Kr210m, each country wntnbuting in the traditional 3:2:2 ratio. Contributions will besnartu between Governments and private sources. For example, the nsn Government will contribute Kr33.75m, and private sources b h D d ^ ernment l , prS" ec!ual amount. Similar arrangements will be made by the Danes and f e 70rwegians. The Swedish Government is also providing an interest-tr «lo:inofKr22.5m. Within a few years the Oceanic Air Traffic Control Centre at Prest-wick may be transferred to Preston. Lancashire. The Scottish Air Traf- fic Control Centre, both civil and RAF. will remain in Ayrshire. PtA is the sixteenth foreign airline to be granted an Air RegistrationBoard Certificate for the repair and overhaul of airframes, components, radio and radar and engine overhaul. A similar recognition by theFA A was granted in September 1960. NAMCO. the Nihon Manufacturing Co of Japan, hopes to have thefirst prototype YS-11 turboprop flying by the end of this year. First production deliveries, however, are not expected until 1964. All-Nippon Airways are considering the purchase of 25, five for delivery in 1964, nine in 1965 and 11 in 1966. El Al took delivery of its first Boeing 707-420 in a formal ceremonyat Boeing Field. Seattle, on May 7. Attending for the airline were Brig Gen Ephraim Ben Arzi. El Al president; Dror Galezer, deputymanaging director; and Chaim Pearlman. El Al resident representative at Boeing. El Al has ordered two 707-420s and two Boeing 72OBs. As expected. BOAC have briefed counsel for the forthcomingimportant Licensing Board hearings. The corporation's advocate will be Mr Henry Fisher, Q(\ barrister son of the Archbishop of Canterbury.As recorded in our issue for April 27, page 580, British United Airways have retained Mr Gerald Gardiner, QC. BEA have retained Mr NevilleFaulks. QC.
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