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Aviation History
1963
1963 - 1642.PDF
452 FLIGHT International, 12 September 1963 AIR COM MERCE . . . THE CEDAR BEARS FRUIT ALTHOUGH the latest annual report of Middle East Airlines still leaves many questions unanswered it should be recorded that until recently this airline published no report at all. And al though the contents are still patchy, there is a steady improvement to be seen. The 1962 report, for instance, is the first to include a balance sheet (minus comparative data for 1961 and the supporting notes, however). According to the report MEA's operating profit rose from £L4.2m in 1961 to £L5.4m in 1962, the corresponding net profit figures (i.e., after interest payments, etc) being £L0.7m and £L2.1m. This appears to be entirely the result of increased load factor (up from 48 to 53 per cent), for average unit cost appears to have risen while the average revenue rate appears to have declined slightly with the introduction of new promotional fares. The uncertainty surrounding these trends is because there are insufficient related statistics on finance, operations and traffic to allow a detailed analysis of MEA's results. A further feature which hinders analysis is the inconsistency of many of the figures. To give an example, the figure quoted in the 1962 report for 1961 revenue is as much as £L4.7m less than that given in the 1961 report. Another example is that uatil now MEA have included free passengers in their statistics. The 1962 report shows free passengers separately and incidentally this shows that the volume of non-revenue traffic fell sharply last year from the remarkable level of 1961 when there was one free passenger for every six paying passengers. Despite the paucity of material it is possible to see that the good results now being experienced are primarily the result of the Comet operation. With the full fleet in operation for the first full year, utilization was so built up that the annual average reached the excellent figure of 8ihr daily. The high productivity of this fleet allowed the airline's total output to rise last year to 50m c.t.m., this being achieved with a workforce of only just over 2,000 employees. The balance-sheet shows, however, that the good results now being experienced are something new for MEA. The fact that the accumulated profit stands at just under £Llm when the last two years' net profits were close of £L3m is evidence that deficits were substantial at the time BOAC pulled out. Another sign of a weak financial position is the large amount of expenditure which is shown as having been capitalized. But probably the most positive indication of the past is the excessive value of net assets (£L90m) in relation to total revenue (£L65m). This degree of imbalance is often an indication of past unprofitability or inadequate depreciation provisions or of both. Successful operation of Comets is not the only feature which characterizes the MEA of today from that of yesteryear. Another significant change is that the increasing practice of negotiating pool agreements with its rivals means that MEA is no longer the rela tively lone wolf that it used to be. A striking instance of this trend is the latest pool with SAS and AUA which covers not only revenues but also expenses. A further example is the agreement with Air Liban whereby that airline appears to have in effect been taken over by MEA. This arrangement has led to the integration of the two companies' networks and fleets and has also resulted in Air France becoming the holder of 30 per cent of MEA's shares. On the evi dence of the 1962 report it seems that MEA should prove a more rewarding investment to Air France than it did to BOAC. TRAGEDY AT DUERRENAESCH AS this issue went to press Swissair stated that damage to the under carriage during take-off "probably" led to the accident to Caravelle HB-ICV on September 4. All those on board, 74 passengers and a crew of six, were killed when the aircraft crashed near the village of Duerrenaesch about five minutes after take-off from Zurich en route for Rome via Geneva. According to the Swissair statement, the service, SR306, was scheduled to depart at 0700hr. The aircraft taxied, led by a car, to the south end of runway 34 in fog. Visibility was reckoned as 180 metres, less than the required mini mum; but after discussion with the tower, and in accordance with common procedure, the captain decided to taxi along part of the runway to assess visibility and to disperse the fog with the heat of his jets. Having concluded that visibility was in accordance with regulations he took off. The whole taxying operation took 13min. The aircraft disappeared from the Zurich radar screens about BOAC reservations desks in New York are now linked by transatlantic cable to a computer in London which gives immediate replies to the state of bookings on all the corporation's flights up to 140 days ahead. The photograph shows the interrogater unit being operated in New York. The equipment is manufactured and installed by Standard Telephones and Cables Ltd five minutes after an apparently normal take-off. According to the Swiss Federal Air Office, "the pilot suddenly started to give an emergency signal. He was obviously extremely disturbed and the radio ground crew had difficulty in making out what he was trying to say. But before he could give any clue as to what had happened he gasped out 'no more.' Then there was silence." Part of the rim of one of the four left-hand main wheels was later found on the runway, together with a static discharge support, pieces of tyre and traces of hydraulic oil. The chain of circum stances which led to the crash, says the Swiss Federal Air Office (which is in charge of the investigation) "probably started when the undercarriage was damaged during take-off." A conference of all interested States and Caravelle operators, as well as the manu facturers, was called by the Swiss Federal Air Office. Since the war Swissair have suffered only one fatal accident, when a Convair 240 crashed in June 1954 with the loss of three lives. CAB Fares Power The United States Senate Commerce Com mittee has approved a bill to give the CAB power either to suspend or fix fares and rates for US international airlines. In connection with the Salzburg IATA conference, the Board has told American carriers to ask for substantially lower fares and for the introduction of a new low-fare class on the Atlantic similar to PAA's $160 thrift rate proposal. Runabout the States An attractive scheme for encouraging visitors to the United States has been announced by the ATA through the co-operation of 12 local service airlines. For $100 any one residing more than 100 miles beyond the United States bor°e^ can have unlimited travel to any of 567 cities for 15 days, or 52W for 45 days. UAA's Far East Service A report in the Interavia Air Leii* suggests that United Arab Airlines intends to resume services o Tokyo by the end of September. Services were suspended at tn end of July shortly after the airline suffered a second major C accident on the route. The report says that services may be re sumed with Comets augmented by a Boeing 720B on charter from Lufthansa. UAA has also shown interest in buying a mI*ernj Comet 4Cs, and Lufthansa has been reported as thinking oi semns one or two 720Bs. Ghana's B-18s To Go Back Ghana Airways are returning four o their fleet of eight Il-18s to the Soviet Union as surplus to requ ments. Annual Accident Survey The Ministry of Aviation have ^ published the annual survey of accidents to civil aircraft o United Kingdom during 1962. Compared with the P^!°fflLg the ratio of fatalities for non-scheduled as against schedu1^ ^oUt took a sharp turn for the worse. However, this was brougru ^ entirely by the loss of 111 lines in the Caledonian Airways v accident near Douala.
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