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Aviation History
1962
1962 - 1119.PDF
ass FLIGHT International. 12 July 1962 45 One of twoCurtiss C-46s operated by the Italian airline SAM is seen here at London Gatwick on a recent freight charter. The aircraft is being unloaded with the aid of one of the Ministry of Aviation's new high-lift loaders together from the point of origin but they may return individually. This method of boosting load factors by appealing to groups is not new in principle, of course; what is new is the apparent lack of restriction on solicitation by the airline or by travel agents. Such restrictions—as are for example applied by IATA on the North Atlantic—are necessary to avoid too big a diversion from regular- fare business. Group discounts may bolster load factors but depress the all important revenues. TCA simply require that one person in the group must be responsible for transport arrange ments, for the making of a written application at the point of origin, payment of the fares, and acceptance of the tickets. GO WEST TO INVEST FEW industries are as unattractive to the investor as air transport. And in few countries last year did the industry fare worse than in the United States; and within the US, few airlines had worse problems to face than Western Air Lines, this company being particularly badly hit by the flight engineers strike. Yet investors in Western received a record dividend—a dollar per share in hard cash —to bring to eleven the number of cpnsecutive years in which cash dividends have been paid. The value set by Western on a cash dividend is shown clearly by examination of the airline's latest accounts. In 1961 revenues fell from $69m to ?64m while costs (including interest payments) remained unchanged at S64m, thus wiping out the previous year's profit. To find the $1.4m needed to pay the dollar dividend, the company had to sell off a large part of its older fleet, and also had to draw slightly on reserves. If further proof were needed that Western takes its 9,000 shareholders seriously, it is provided by the Financial World merit award (for the fifth year running) for the quality of the airline's report from the investor's viewpoint, and Lord Douglas of Kirtleside, chairman of 8£A, is invested by Mr I. J. Gregory, president of the Society of Licensing Aircraft Engineers and Technologists, with the Society's gold badge. The presentation was in recognition of Lord Douglas's I960 paper "Commercial and Economic Developments in European Air Transport" by special recognition from United Shareholders of America Inc (which acts as the voice of shareholders in major US corporations). Despite the grant of traffic rights to TWA to compete with Western on the cream route Los Angeles/San Francisco, and the granting of rights for the new route California/Texas to Continental instead of Western, the airline nevertheless expects that 1962 will prove to be the best year yet for its shareholders, particularly if final approval comes through for Western to enter the lucrative California/Hawaii market. WHY M HEREIL RESIGNED ONE reason for the resignation of M Georges Hereil, president of Sud-Aviation (see last week's issue) was that he believes the timing of the Anglo-French supersonic airliner venture to be wrong. His resignation was announced on June 28 and is to be discussed at a French Cabinet meeting, when a successor will be named. "I am leaving Sud-Aviation with a lot of heartache," he said. "Sixteen years ago everything was ruined and in disorder. We only had our faith, goodwill and tenacity but we became a great aircraft firm with a great future." He went on: "I believe that continuity is the essential factor in success in the matter of aircraft construction. It took 12 years to make the Caravelle the immense success it is. In the development of the Super Caravelle it was just as difficult. Thus it is necessary that continuity be assured to whoever carries the responsibility for the whole of the enterprise." The enormous sums of money involved necessitated inter national co-operation, said M Hereil. "This co-operation certainly brought problems," he said. '"First it was a question of settling them between Britain and France, but it was also necessary to think of other countries in Europe which possessed the means of aircraft construction, such as Germany, Italy, Belgium, Holland and Spain." M Hereil's remarks on continuity refer in particular, it is generally believed, to the chairmanship of the joint Anglo-French Committee on supersonic airliner design. Mr Thorneycroft had agreed with the French transport and defence ministers, M Robert Buron and M Pierre Messmer, that the chairmanship should be held by M Hereil and by Sir George Edwards of BAC alternately for two- year periods. M Hereil wished the chairmanship to be extended to ensure continuity. The time-scale for the Super Caravelle envisages a first flight in 1966 and airline service three years later. BALPA AND LICENCE FEES THERE was no consultation with the British Air Line Pilots Association by the Ministry of Aviation about the increase in fees for the renewal of pilots' licences. This was said by Mr C. M. Woodhouse, Parliamentary Secretary to the Ministry of Aviation, in a recent reply to questions in the House of Commons about the increases, which amount to more than 300 per cent. Mr Woodhouse pointed out—as had been stated in the White Paper on aviation safety last April—that the increases had been applied because "far too many pilots have presented themselves for examination unpre pared." The Ministry had known very well, said Mr Wocdhouse. what BALPA's reaction was bound to be; a copy of the White Paper had been forwarded to the Association before publication, but BALPA "did not then indicate, and had not subsequently indicated, that it felt it should be consulted." He added that the Minister was of course always ready to meet the Association, "but I cannot give any undertaking that the increases, which are already in effect, will be withdrawn."
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