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Aviation History
1963
1963 - 2156.PDF
FLIGHT International, 12 December 1963 957 SWINGS AND ROUNDABOUTS London Heathrow Central (October 1963)—"Flight International" photograph The New Airport Charges : Mo A off on the Wrong Foot ? By G. L. MARCHAULT THE 1961 Government White Paper on Airports made it perfectly clear that air transport must eventually pay its way without subsidy. From the time the document was published the air transport industry knew full well that it must resign itself to waiting and wondering just where the blow would fall, when it would come and how heavy it would be. Yet when the answer came at the end of September of this year it caused gloom and consternation. The Minister announced that he would recover most ot the money being spent on the provision and maintenance of technical services at most State-owned and certain non-State airports where he provides services. As from April 1,1964, he is going to abolish the existing intercontinental surcharge which is levied on aircraft of over 40,0001b arriving from or going to places outside Europe and the Mediterannean of twice the standard fee (less £5 for aircraft of between 40,0001b and 80,0001b, and less £3 if over 80,0001b), and replace this with a flat rate of one-and-two-thirds the standard fee with no deductions. A new surcharge called the "technical service *arge" is to be applied at a fiat rate of 3s per 1,0001b, except at eleven of the smaller airfields. The existing rebates for short-range flights (at present 80 per cent for less than 45 statute miles, 70 per cent for less than 80 miles and 55 per cent for less than 115, if living from the UK, Channel Islands or Isle of Man) are to be abolished and replaced by a flat rate of 50 per cent for less than 115 mil «s. i.e., the same as the present rebate for a flight of similar length arriving from the Continent. The result of these changes will be to a make small addition to long-haul traffic and a massive increase for domestic flights to landing fees which are already two-and-a-half times the world average. Whether or not municipal airports such as Luton and Southend will be allowed, or even wish, to impose the new charge remains to be seen but commonsense might indicate that they would attract more traffic if they did not. Simultaneously the passenger service charge of 7s 6d for every outgoing passenger proceeding beyond the UK, Channel Islands or Isle of Man is to be abolished. In the initial period of shock which followed this announcement it was all too easy to overlook the sting in the tail, namely, that these new charges do not contribute towards the provision of en route navigational services and that Government policy is for the ultimate recovery of the cost of these as well. The lot of the financial experts within the Ministry of Aviation who are responsible for such accounting is unenviable. They are under sporadic but relentless pressure from the Select Committee on Estimates and have to try every tactic in the book to get back as much money as they can, particularly bearing in mind that they lost £2m on ten United Kingdom airports during 1961-62. Mean time, every move on their part is viewed with extreme antagonism and bitterness by an industry which feels that it is victimized. Overall, in 1961, world air transport made an operating loss of £42m, which represented 2 per cent, not of capital invested, but of operating revenues. In 1962 it managed to reverse this and made
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