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Aviation History
1963
1963 - 1828.PDF
FLIGHT International, 17 October 1963 635 prematurely into re-equipment programmes without exercising sufficient care in counting the cost. We ought to have learned our lesson by now." There was "a very real danger" of diverting money and resources into supersonics, to the deprivation of developments in the economy of existing jets. Would it not be more rational to concentrate on "a short-haul aircraft with low seat-mile cost which would really open up air travel to the peoples of the world ?" Count Carandini, the new president, in a reference obviously aimed at the CAB, said that IATA should not be "opposed or hindered" in its resolutions by interventions of government agen cies, though he warned that if the Association did not do something about excess capacity "we must expect governments to take action over our heads." He spoke with frankness about IATA's own failings here: "Over-capacity has caused an enormous drain on our resources, and it continues to do so after four full years of jet operations. To be realistic, we must admit that persistent over capacity can no longer be attributed to the introduction of new types of aircraft, but primarily to the incorrect planning of the capacity to be offered.. .." If substantial fare-reductions were divorced from control of capacity, the industry would revert to public subsidy in one form or another, and would "bid farewell to any hope of health or independence." As for supersonics, these ought to "inspire us to cure the disorders that at present weaken us," so that the airlines might face supersonics "purged of the errors that attended our reception of subsonic jets"—and with a subsonic/supersonic differential fare structure. Sir Matthew Slattery of BOAC, this year's chairman of IATA's executive committee (the Association's basic authority) made a good impression during the week. At a press conference—one of the few given by delegates—he said he was not so worried as some about the SST, which unlike the subsonic jets would come in a relatively small way and would not replace subsonic jets. There would be a demand, but a limited demand, for the SST, and he was not worried about writing-off subsonic jets by the end of the decade. In answer to questions from the Italian Press he gave the VC10 a big plug (quietness, and take-off and landing speeds), and revealed plans for a VC10 development with Rolls-Royce Medway engines having a 10 per cent improved fuel consumption. Asked about the South African situation, and whether BOAC would re-route its services there if banned en route by African States, Sir Matthew said "yes, we would, probably." BOAC would continue to serve South Africa, and in a way that did not cause offence—"we do business with anybody regardless of race, creed or colour." Answering a question on ticket swindles, he said that the first episode, a few months ago, had cost BOAC, PAA and TWA a lot of money, BOAC least of all—about $15m. Altogether it might have cost BOAC £10m to £15m at the final reckoning. This was "a big criminal job," related to currency manipulation and gold smuggling; BOAC's security service had discovered a "bunch of international crooks" who went to a small agency with the promise of big Left to right: Mr J. F. Dempsey of Air Lingus, who handed oyer the IATA presidency for 1963-64 to (right) Count Nicolo Carandini of Alitalia, the host airline. In the centre is the Italian Minister responsible for civil aviation, Sr J. Andreotti group business—all bogus—got one of their men into the agency, and in due course absconded with the money and the tickets. One agency in Milan had lost £30,000, and "if we're not careful we're all going to be robbed." Asked about BOAC and Peking, Sir Matthew said that no negotiations were in hand, though the corporation would go any where they were asked if it were an economic proposition. They were always being asked to service new places (though the Chinese had not actually asked them) because, like Alitalia, BOAC was the best airline in the world. News-points from the Meeting • TAA foresee a requirement for six BAC One-Elevens initially, and 12 eventually, notwithstanding Mr Ansett's proposal to buy four more 727s. • UAA have a requirement for three One-Elevens, rising to five, from 1966. • BOAC, Qantas and TCA are working informally together to standardize operational and commercial requirements for the Concorde. The group does not include Air France. • Some Qantas engineers are not worried so much about supersonic radiation problems, which they feel can be solved, as about upper-air weather and turbulence, on which they feel more knowledge is required. • Asked which airport authorities had, according to the IATA tech nical committee's report, imposed noise limitations "arbitrarily and without consultation," Dr Piero Venturini of Alitalia, chairman of the committee, said "New York, Athens, London and others." • Mr A. H. Milward, chief executive of BEA, said that as a result of increased UK domestic charges BEA's costs would rise by about £fm, and he thought it was almost inevitable that domestic fares would have to go up on April 1 by perhaps six per cent. • Air Cdre Nur Khan of PIA announced plans for a service, probably next April, to London from Karachi via Moscow. These are the first beyond-Moscow rights granted to a non-Communist airline. BRITISH EAGLE'S UK TRUNK APPLICATIONS REFUSED AS this issue closed for press it was learned that the Air Transport Licensing Board has refused every one of the British Eagle applica tions for additional United Kingdom trunk services. At the hearing in August (before the company changed its name from Cunard Eagle) the Board rejected BEA's plea that the applications were res judicata and accepted British Eagle's contention that although the general arguments for the applications were substantially unchanged from those employed in July 1961—when the Board first heard domestic-trunk applications from the airline—the Possibility of changed circumstances with the passage of time justified re-examination of the situation. In making its decisions on the key routes of the applications, the Board said: "In 1961 we decided the amount of capacity which, having regard to the many conflicting arguments, a second operator nught reasonably be allowed to mount on the London - Glasgow, Edinburgh and Belfast routes and refused to grant a licence for a service between London and Manchester. We have reconsidered 'he reasons for these decisions and are satisfied that our fundamental approach was sound and need not be modified. In particular, we think that the interests of British civil aviation would not be served °V adopting a course which would be detrimental to the financial interests of BEA at a time when these routes are not, and are not likely to be, profitable for some time. We are satisfied that the capacity provided by BEA is reasonably adequate to meet the needs of the public. While it will probably remain the case that at peak times not every intending passenger will be able to obtain a seat this is a common feature of public transport everywhere." The application for additional capacity on the London - Dublin route was refused because it involves a traffic-rights issue which has not yet been resolved in respect of the services already licensed. Not surprisingly, the Board turned down British Eagle's bid for limitation to be imposed on BEA's services. One of the main pillars of the British Eagle case was the com- pany's need of the applications for operating an economic viability. The Board emphasized that considerable attention had been paid to this point, but concluded that no weight could be attached to it, noting that the position of British Eagle was "the result of its own acts." Concerning the routes for which the company already had licences, but did not operate, the Board observed that at the 1961 hearing it was told that for the first two years the airline intended to operate the domestic trunk routes with daily Viscount services, and that on this basis it granted the limited-frequency licence. The
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