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Aviation History
1963
1963 - 2112.PDF
•'•••• '• " FLIGHT International, 5 December 1963 BEA'S 74 PER CENT LOAD FACTOR CONTRIBUTING in no small way to BEA's sunniest summer (£7?m profit after paying interest on capital), the figures in the following table show the results of passenger stand-by fares on the domestic trunk routes during the same period, which was also the first trial period for the scheme. BEA will no doubt have their own ideas on how much the stand-by fares stimulated the sale of ordinary-price tickets, but the load factors on all services showed a marked improvement over the already high percentages of 1962. On page 705 of the May 16 issue of Flight International a similar table showed the results for April. In that first month of the scheme stand-by passengers boosted the overall load factor two points on most routes. BEA STAND-BY FARE PASSENGERS SUMMER 1963 (APRIL I, 1963-OCTOBER 31) London - Belfast Belfast - London London - Glasgow Glasgow - London London - Edinburgh Edinburgh - London Totals Seats avail able 153,464 152,052 215,477 217,437 141,393 141,743 1,021.566 Passengers Ordi nary 108,949 109,156 154,213 151,547 101,410 104,444 729,719 Stand by 5,068 4,495 7,307 5,998 3,799 3,863 30,530 Load factor ordinary % 71 72 72 70 72 74 71 Increase in load factor % 3 3 3 3 3 3 3 Total factor % 74 75 75 73 75 77 74 Sum mer load factor % 1 65 • 68 67 KLM's BOARDROOM TROUBLES IN its issue for November 19 The Financial Times published a report from its correspondent in the Hague on KLM's management problems. Opening with a reference to the statement by the flying staff associations on November 14 that they had lost confidence in the management, the article said: "This unprecedented step followed months of rumours about personal disagreements between members of the management board, Messrs H. Albarda, Frits Bescancon, E. H. Larive and G. van der Wal." A ministerial statement in Parliament made nonsense of a board statement that unanimity had been restored following the media tion of one of the non-managing directors, the article continued. "From information supplied by KLM to Dutch reporters, the inescapable deduction is that certain forces in KLM are now doing their utmost to force one of the newest directors, Mr Larive, to resign. All this comes ironically at a moment when the third quarter results, which report net profits up from F1.6.5m in July- September 1962 to F1.16m (£1.6m) in the same period this year— in spite of a F1.20m loss of income from the closing of the New Guinea route—seem to indicate a turn for the better in KLM's financial misfortunes. "It is the newest 'strong man' at KLM Mr E. H. Larive, who is the most determined that the new reorganization measures suggested by the US management consultants, McKinsey, shall be pushed to their logical conclusions—Larive was called in from a successful management spell at Shell Tankers NV to supply the necessary pep to KLM at the beginning of this year. "Larive caused a lot of resentment at KLM by bringing some of his senior Shell lieutenants with him into his intensely clannish new company. His no-nonsense attitude and an unusual degree of self- confidence also seem to have isolated him somewhat from other Parts of the organization, including his fellow directors. "As a result of several factors—the substitution of stabilization for the old policy of steady growth, the switchover to jets and the reduction in the number of aircraft types in the KLM fleet—several hundred pilots and other aircrew have become redundant in recent years. At present, between 200 and 250 will still have to go, out of »total of 2,300 (total staff 16,000). Under a quite generous redun dancy scheme offered by the company, voluntary leavers can expect U P to £10,000 in cash. The great majority would, in fact, reach this ^aximum, so that their indemnification would cost KLM well over £2m. "Rightly or wrongly, the crews were dissatisfied with this. They 913 thought they had found a champion in Larive, who gave a rather ill-considered press interview earlier this autumn, hinting at far fewer dismissals. When a new personnel officer was appointed in spite of Larive's opposition and in his absence, the staff associations came into the open with their lack of confidence in the management as a whole, which all insiders knew to be a vote of exclusive confidence in Larive." Switching from purely management problems The Financial Times correspondent states that the selection of new equipment has contributed to friction within the management and appears to rule out suggestions that the Fokker F.28 is being considered for KLM. "Apart from the reorganization scheme, at least two other basic problems lie at the heart of the disagreements among the managers. Within months, a new medium-range jet will have to be chosen to replace the Electras and the Viscounts which now serve most shorter routes. Although five aircraft are still theoretically in the running, three have in fact been found unsuitable: the Trident, the Boeing 727 and the Caravelle 10. This leaves only two serious contestants, the BAC One-Eleven and the Douglas DC-9. "Two advantages of the BAC One-Eleven are that it is cheaper to buy than its nearest rival and can be delivered well in time before the change-over to medium-range jets which has been planned for mid-1966. But Larive seems to favour the US aircraft, again for two main reasons; although more expensive to buy, it would, under favourable circumstances, be more profitable to run. And it would fit better into the present fleet and type tradition of a company which has been a loyal and satisfied customer of the Douglas factories from the days of the DC-2 to its present-day DC-8, of which KLM has 13 in operation and three on order. "The second basic problem concerns the optimum size of KLM as an international operator, where Larive seems to be nearest the view that KLM should gradually be reduced to a somewhat larger Swissair; an economically run, no-nonsense airline largely based on a European network, with two or three intercontinental branches on the most promising routes (Atlantic, Far East) instead of the world-wide carrier which KLM still is. "In spite of rumours, some inspired by members of his staff, that Larive has already made up his mind to pack his bags as soon as the present commotion has died down, a more likely guess is that the former naval officer has no intention of surrendering yet." New Finery, if no Finance KLM is to introduce a new fin emblem. The crown and italic capitals within a white circle on a diagonally striped background are to be replaced by a simplified crown and Roman capitals within a white circle on a background of 11 wider horizontal stripes—six dark and five light blue. The new emblem is the work of a British designer, Mr F. H. K. Henrion. Seen on the occasion of the inaugural BKS Hawker Siddeley 748 flight from Leeds/Bradford to Amsterdam and DUsseldorf, are, left to right, Mr H. Patten, Town Clerk of Bradford; Alderman F. H. O'Donnell, deputy chairman, Leeds I Bradford Joint Airport Committee; Miss M. B. Priestly, assistant secretary, Bradford Chamber of Commerce; Mr J. Hiley, MP, president of Leeds Chamber of Commerce; Mr J. H. Shaw, JP, president of Bradford Chamber of Commerce; and Mr C. J. Stevens, BKSjchairman
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