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Aviation History
1964
1964 - 1130.PDF
fUGHT International, 23 April 1964 633 AIR CO E R C E WAS CORBETT NECESSARY? IN a year when other major world airlines have been predicting large profits the chairman of BOAC, Sir Giles Guthrie, provisionally estimates that BOAC expect an operating surplus of over £6m for 1963-64. This is equivalent to a profit of more than £3.5m after paying interest on BOAC's live capital. It may be decided to make provision out of this sum for "certain expenditure" but, subject to this, the profit of over £3.5m should cover the further interest payable on the corporation's £80m dead capital. In other words, Sir Matthew and Sir Basil were winning, and BOAC made a net profit, after payment of all capital charges, in 1963-64. Traffic revenue, including that earned by BOAC-Cunard, will exceed £102m—over £9m higher than the previous best. The operating surplus represents a Te|urn on capital actively employed of over 6 per cent. The subsidiary companies of BOAC and of BOAC-Cunard expect to break even compared with a loss in 1962-63 of over £lm. The prospects for 1964-65, the current year, are also good though Sir Giles expects that the costs of introducing the VC10 "will result in a much reduced operating surplus." The next two years will see the necessary improvements in efficiency which should lead to an altogether healthier financial position for BOAC. BRITISH EAGLE'S US CHARTER PERMIT UNTIL last year there was only one British transatlantic airline, BOAC, competing with the half-dozen US carriers operating scheduled services or frequent charters between the USA and Britain. In June 1963 the CAB created a precedent by awarding Caledonian a "402" permit to engage in transatlantic charters; and now, as reported in last week's issue, the CAB has granted an almost exactly similar permit to British Eagle. As in the case of Caledonian's permit the CAB has attached certain conditions aimed at ensuring that Eagle does not concen- trate all its sales effort on the American market, thus syphoning off too much business from the American carriers. There is not much likelihood of this anyway; but the precise terms of Eagle's permit are as follows:— "Within any given calendar year the number of charter trips originating in the United States shall not exceed the number originating in the United Kingdom by more than one-third; Provided, however, that the holder in any event may perform up to six but in no case more than 15 US-originating charter trips in excess of the number of UK charter trips performed within each calendar year. Any charter originating in one country and flown to the other, whether one way or round trip, will be considered one charter for these purposes." The last few weeks have seen major changes in the British air effort on the Atlantic. There has been the US Civil Aeronautics Board's permission for BOAC to operate under the name of BOAC-Cunard; Caledonian's "Loftleidir"-type application to the ATLB to operate scheduled and services and scheduled ITs London - Prestwick - New York; and the CAB's award to British Eagle of a transatlantic charter permit. LUFTHANSA'S EUROPA JET BOEING'S first export 727 began operating fare-paying passenger services into and out of London within a month of its main rival, the Trident, operated by BEA. The first of two Lufthansa proving flights arrived at Heathrow on April 12 and on April 14 a fare- paying passenger service was operated to Hamburg under the command of Captain Kuehnl. Flight International's representative was told by Captain Kuehnl that the 727's Vno is Mach 0.82 and normal IAS 500kt. He did not know whether this was faster than the Trident although he and his colleagues were emphatic that the approach speed, 108kt to 121kt, was "much better." The interior of the aircraft has 84 economy-class six-abreast seats and 12 four-abreast first-class seats, of an unusual pointed wing design. The cabin has the 707's feeling of size and space though the Lufthansa decor of grey and black leather is not as pleasing as most Boeing schemes we have seen. Of the 12 727s ordered by Lufthansa five have already been delivered, one still being in Tucson, Arizona, where all Lufthansa's conversion flying (by crews drawn mainly from Viscounts) has been carried out. On April 14 a Lufthansa Boeing 727 visited London Heathrow on the eve of operating regular daily "Europa Jet" services from April 16 linking Hamburg and Dusse/dorf with London and, as from April 26, Frankfurt. See accompanying note "Flight International" photograph
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