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Aviation History
1963
1963 - 0121.PDF
fllGHT International, 24 January 1963 109 BEA in 1963 IN the current financial year, 1962-63, BEA may be able to hold their loss to not too much more than the level of that sustained in : 961-62, namely £l|m. This is cheerful news, because in the Hodse of Commons late last year the Minister of Aviation stated [hat BEA's 1962-63 loss might be £4m. According to present esti mates, the financial year due to begin in ten weeks' time, 1963-64, should see BEA back in the black. While there is at present a surplus of Vanguard capacity (though if anything a shortage of Comets) BEA expect domestic business to expand at a rate that will, in about two years' time, keep the whole Vanguard fleet occupied. There could conceivably even be a siiortage of this type—which is to be BEA's chosen instrument on domestic routes—in future years. Much depends on whether the economics of domestic routes are to be threatened by an independent stealing a march with jets. It is believed that the two leading independents, British United and Canard Eagle, are aware of the economic consequences of premature jet competition on domestic routes, and it seems that a gentlemen's agreement has been reached at the highest BEA and independent levels on a domestic trunk-route "jet moratorium." At the moment Cunard Eagle is the only independent to hold licences to compete with BEA on the corporation's major trunk routes, and these licences are validated by the Air Transport Licensing Board for, among other aircraft, jets. The British United subsidiaries Jersey, Silver City and Manx have been including BAC One-Elevens in their recent applications for domestic routes. It is of course open to the ATLB to take action to prevent premature domestic jet competition by "varying" licences to preclude the use of jets; but at the moment it seems that the licensees themselves are taking the responsible view. Meanwhile it is understood that BEA are examin ing the possibility of domestic fare adjustments which will differ entiate between the peak "business hours" and general demand. This would presumably take the form of a surcharge during peak business-travel hours. BEA are under no delusions about the high cost of operating Comet 4Bs on the short-stage routes from London to Paris, Brussels and Amsterdam. Comets are being scheduled on these services in a limited way to begin with (daily to Brussels and Amsterdam, twice daily to Paris) for competitive reasons. There is no suggestion that the Comet 4B, money-earner though it is on the longer routes, can pay its way on these 200-mile sectors. BEA are aware of the fact that their sister corporation BO AC will have two or three Comet 4s surplus to requirements in the coming year, and in principle there appears to be nothing in the way of a lease or charter arrangement should BEA's Comet 4B fleet be unable to cope with demand this year. Load factors on BEA's Comet 4Bs last year were around the 52 per cent mark, and the smaller BOAC Comets, which have 70 seats compared with 89 in BEA's Comet 4Bs, could clearly bridge any gap. There are, however, operational differences—particularly in respect of cockpit layout and crewing—which would not allow BOAC Comets easily to be absorbed by the sister fleet. Nevertheless, this could be an oppor tunity for a practical demonstration of BEA-BOAC co-operation. BEA are delighted with the Trident's progress, which is ahead of schedule, and remain firmly convinced of the type's suitability for their requirements. Their only concern, which seems to be shared by the manufacturers, is that progress with the automatic landing feature is not going ahead as rapidly as it should, due to lack of funds. It it believed that BEA have offered to purchase a 25th Trident fully equipped to accelerate development of the system. The aircraft would, it is thought, be ordered initially by the Ministry of Aviation and bought by BEA after completion of autoland development. A further £2m is one figure that has been mentioned as the sum needed to get the programme moving with the speed necessary to enable the British lead—against mounting American and French competition—to be maintained. There is at present no place in BEA's future for the BAC One- Eleven; but the corporation still has a definite requirement for two helicopters. Instead of Vertol 107s, however, BEA technical and commercial opinion is now, for various reasons, not least a steep 107 price increase, in favour of S-61s. One would be operated on Penzance- Scillies route, depending on a Government development subsidy—the question on which hangs the whole of BEA's future helicopter programme. Plans for a new BEA passenger terminal at London Heathrow Central are well advanced and approved in principle by the Govern ment. No soil has yet been turned on the site; but it is hoped that this ambitious new terminal, which will have the utmost in mod con, including fingers, will be in operation by 1966. The corporation remains implacably opposed to any surrender of its Highlands and Islands routes to an independent. The Minister has already talked of the possibility of putting these routes out to tender, and one independent—Mercury—is reported to have offered to do the job for £150,000. Cunard Eagle has also publicly stated its interest in taking over these operations. BEA, who have over 15 years' experience of the cost of social services in the Highlands, may well suggest that such offers should be viewed with scepticism. They are indeed of the view that if these services are to be put on a proper footing a sum of much more than the ££m lost last year may be required in the form of subsidy. In collaboration with the Scottish Council BEA have drawn up a plan for Scotland's domestic air services requiring an annual grant of approximately £lm. A subsidy of this amount would, BEA believe, vastly improve Highlands and Islands air services, permit ting more frequency, more aircraft, and services to and from Dundee. One thing seems certain: a big controversy is warming up on the question of Highlands and Islands air services, and BEA—contrary to the impression that they may have given—do not want to give up one of the most satisfying, if unrewarding, jobs they do. More "Air Commerce" news on pages 132-135 Air-India's new £375,000 jet overhaul base at Santa Cruz, Bombay—"one of the most modern in the world"—was inaugurated on January 12 in the presence of Mr J. R. D. Tata, chairman of the airline. Complete overhaul and repair of Rolls-Royce Conways of the 707 feet is being undertaken. Previously engines were returned to the makers for overhaul at a cost of £5,250 per engine excluding spares. The new base is expected to save more than £260,000 o year in foreign exchange
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