FlightGlobal.com
Home
Premium
Archive
Video
Images
Forum
Atlas
Blogs
Jobs
Shop
RSS
Email Newsletters
You are in:
Home
Aviation History
1962
1962 - 1484.PDF
262 FLIGHT International, 23 August !%2 AIR COM MERCE... valuable document, full of useful comment and information. It is disappointing only in what it does not contain. This review thus ends with a summary of the best in this report. The absence of audited accounts for a reasonably recent period has l>een "a major handicap" in the investigation of the financial resources of some companies, and has delayed final decisions. The report considers many companies to be "grossly under-capitalized." Some appear to be "too quick to extend their business beyond their financial strength." Fleet additions are not properly judged in relation to proper financial and costing, auditing and normal for ward estimating processes. Greater risk-bearing on the part of the owners of a business, by way of increased equity capital, would provide "the necessary discipline and prudence which at present are too often lacking." Companies which go into liquidation and are unable to repay their debts do "a grave disservice to British aviation both at home and abroad," and the disappointed creditors may be less ready to offer credit to other operators. The Board is in no doubt that the major part of the working capital of any air operator should ordinarily be provided by way of share capital issued for cash or its equivalent and that loans and outstanding indebtedness should form only a relatively small part of the company's financial resources. The Board suggests, oi i3ge ll, a three-point financial discipline for soundly organized OJ 'rat ing companies. It warns that operators who do not submit reason ably up-to-date accounts will not normally be granted licences in future. Another warning, to creditors, is that a Board licence should not be taken to mean that an operator is "permitted" to carrv on business knowing himself to be insolvent. On insurance, the Board notes that no action is in hand to remedy the state of affairs, referred to in its previous report, concernina the inadequacy of insurance requirements for operators. Examining the controversial question of inclusive-tour traffic carried by foreign operators, the report reviews the criticisms made of the licensing procedure (which is alleged to cause tour operators to "book foreign") and concludes: "The risk of diversion of traffic to foreign carriers ... is small and any attempt to remove this risk entirely and with certainty would bring other and less desirable consequences [i.e. foreign traffic rights] in its train." A table shows that, in the summer of 1961, the British/foreign share of IT charter services was roughly |:J. However, the Board says that in 1962 there may be a "significant increase in the share of inclusive-tour traffic carried by foreign operators." On a domestic note the Board repeats its previous complaints about the inconvenience of its offices at Therese House and notes that no change was in prospect at the end of the year under review. A warm tribute is paid to the Board's secretary, Mr J. E. Barnes. and his staff. US Defence Exercise Sky Shield III is due to take place on Septem ber 2, when all aircraft will be grounded for a period of 5Jhr in continental United States. FAA Special Civil Air Regulation SR-452 provides the airlines with full details. Lufthansa London Mishap A Boeing 720 of DLH landed at Heathrow on August 15 with its nosewheel locked up after unsuc cessful attempts to lower it. There were no casualties, and damage was not serious. First Chinese Viscount? Though the British Aircraft Corporation can make no comment, reports from Hum state that a Viscount was rolled out last week for flight test bearing the initials CAAC above the cabin windows. The aircraft is unpainted, except for a plain white fin, and bears the number 620 on the nosewheel door. It may be the first of six reported to have been ordered by the Chinese airline. Caledonian's Transatlantic Charter application to the CAB began to be heard in Washington on August 13. Pan American and TWA are objecting. BOAC and Manila As from August 16 BO AC flights to Australia and Tokyo via Manila were re-routed via Singapore and Hongkong, following the termination of BOAC's Manila landing rights (see last week's issue). East Anglian Appeal Channel Airways (East Anglian) have appealed to the Minister against the ATLB's decision to impose limitations as to the number of supernumary passengers that mav be carried on proposed Bristol 170 vehicle-ferry services Bristol- Cork and Bristol-Dublin. The company is also appealing against limitations on its licence to operate services to Paris from Ipswich. Southend, Rochester and Portsmouth. There will be a public hearing at No 10, Carlton House Terrace, London SWl, on October 9, starting at 10.30 a.m. The commissioner appointed b) the Minister is Sir Kenneth Roberts-Wray, GCMG, QC. Alongside a Comet 4C of MEA at Beirut International Airport is one of the airline's new long articulated buses, now a familiar sight at the airport- Seating up to 62 passengers, they are built in the Lebanon to a German design
Sign up to
Flight Digital Magazine
Flight Print Magazine
Airline Business Magazine
E-newsletters
RSS
Events
