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Aviation History
1964
1964 - 2870.PDF
l-'°.rnational, 19 November /964 855 MILWARD'S EFFICIENCY DRIVE 3EA is now facing a difficult period before the full establishment if its Trident fleet creates the right conditions for the airline to nake large profits once more. This warning, often repeated ecently, is sounded once more this week by Mr Anthony Milward writing in the BEA Magazine. However, this time the chairman 3uts more than usual emphasis on the importance of reducing :osts. Noting that in the seven summer months of this year increases in opacity (14 per cent) had outstripped the growth of traffic (nine 'ya cent), Mr Milward says: "Our losses this winter may well be :reater than last, but, provided that we can keep our costs down, 'at will remain in the black for the full year." Recalling that BEA made a record £3m profit last year, Mr Vlilward comments that there were good reasons why this was such in exceptional year: "We brought no new aircraft into service, spened up no new routes, and traffic increased by 16 per cent :ompared with the year before. This year, the reverse has happened. We are bringing into service a completely new aircraft, with the :xtra cost inevitably involved in so doing, and traffic has been ippreciably below budget in each month so far. It is very difficult [o assign an exact reason for this phenomenon of reduced rate of growth though it is one that has been fairly general with all our European competitors. In addition, the general level of prices wff iay for our basic factors of production is still rising. Thus our inancial position is not as good as it was last year." For the same reasons, Mr Milward warns, the next financial year, 1965-66, also looks like being difficult: more Tridents will be wrought into service, many basic costs will rise again, and any ncrease in traffic will start from this year's lower-than-expected >ase line. "The solution," according to the chairman, "lies in treater efficiency and lower costs." .. , .„ Airways Ltd: (i) are not subject to any of the exceptions provided forin (a), (b) or (c) of section 15(1) of the Civil Aviation Act, 1949; (ii) are in each case less favourable than the terms and conditions observedrespectively by British European Airways and the British Overseas Airways Corporation for their pilots on the above-described aircraft;(iii) ought to, but do not, comply with the requirement of section 15(1) of the above-named Act."(2) The question as to what terms and conditions ought to be observed for the purpose of complying with the above-mentionedrequirement is, with the assent of the Association [BALPA] and of British United Airways Ltd, referred to them for discussion and, ifpossible, agreement, In the event of failure to reach agreement within two months of the date hereof, either party shall be at liberty to reportsuch failure to the Court, who will then, after hearing the parties, determine the question." MEASURE OF AGREEMENT AT ATHENS IATA's traffic conference in Athens ended on November 13 after six weeks of meetings with a limited measure of agreement. The delegations for conference area number 2 (Europe, the Middle East and Africa) are staying on in Athens to continue discussions, but it was agreed that most ordinary fares should remain at their present level until March 31, 1967. Apart from the winter extension of the period of North Atlantic excursion fares (agreed earlier during the conferences, and already recorded) there was agreement on mid-Atlantic, South Atlantic, Europe-Far East - Australasia, Pakistan - India - Far East - Austral- asia, south Pacific and round-the-world fares. There was support for promotional fares, but more discussions on these are to be held. Agreement could not be reached on rules for in-flight entertainment. A new pool agreement has been signed by Air-India and Middle East Airlines for services between India and the Lebanon. SETTER RESULTS FOR KLM IN 1964 OPERATIONAL loss for 1964 by KLM is estimated to be dfl 15-2Om—which is considerably less than that for 1963 (dfl 55m). This was stated by the Dutch Minister of Transport in the House rf Representatives. The Minister also announced that the Govern- nent's guarantees for a total of dfl 425m, expiring on January 1, 1965, will be extended for a year. This was necessary, he said, >ecause the organization of Air Union had been delayed. This incertainty held up the final reorganization of KLM's capital itructure. About Air Union the Minister said that there were two critical factors—the influence of governments on their respective airlines ind the allotment of traffic between the carriers. The governments were politically prepared to create Air Union, but the airlines were ess prepared commercially. "We want an Air Union," he added, "which is open for the whole world and not just for the countries low involved in negotiations." The Minister also touched on the question of KLM's short-haul et order. He said that the airline showed a preference for the DC-9, but preferred to delay the decision in the hope of reaching necessary :o-ordination within Air Union. A final decision will, however, taken before March 1, 1965. tUA PILOTS' PAY: BALPA WINS a dispute that brought Britain's independent air transport ndustry to the brink of a complete suspension of services at the >eak of the summer season, the British Air Line Pilots Association's battle to secure equal pay for equal work on behalf of its members employed by the independents has now been rewarded by a favourable industrial-court award. For the record, here is the text »f the court's decision:— "Having given careful consideration to the submissions and theevidence put before them, the Court find and Award as follows:— U)(a). Those pilots who are employed by British United Airwaysas pilots of Viscount, Britannia and VC10 aircraft (whether on scheduled or non-scheduled services) are respectively engaged in work comparablero mat of pilots employed by British European Airways (in the case of discount aircraft) and the British Overseas Airways Corporation (in"ie case of Britannia and VC10 aircraft) as pilots of such aircraft. The restriction of this finding to pilots of the above-named types of aircraft|s not to be understood as implying that pilots can never be engaged m^omparable work unless the type of aircraft flown is identical. (b) The terms and conditions of employment of the pilots referredin sub-paragraph (a) above who are employed by British United Qantas used its new 707-320C for the first proving flight over the new Tahiti - Mexico - Bahamas - Bermuda - London route. The aircraft left Sydney on November 12. Mr Walter Rosenow has been appointed manager, sales engineering, of the Douglas Aircraft Company's European office in Geneva. He replaces Mr James T. Burton, who has returned to Long Beach. Another F-27 has been ordered by Trans-Australia Airlines. Delivery of this Mk 200 will be in September, 1965, and will bring the TAA Friendship fleet strength up to 11. Total F-27 sales now stand at 286. Three DC-8Fs have been ordered by United Air Lines. Deliveries will start in late 1965, and will be completed early in 1966. United already has six DC-8Fs and 35 DC-8s. DC-8F sales now total 237; Successful Year for SAS Although official financial results are not available yet, SAS made a large net profit in 1963-64. Traffic increased by 15 per cent while capacity was increased by only 6 per cent, so a load factor of 57.6 per cent was achieved. Flight Deck Death On November 11 Capt Kazimierz Fraser, aged 50, collapsed and died shortly after he had landed a BOAC 707 at Kennedy International Airport, New York, on a flight from Manchester. A Seventh 707-328B has been ordered by Air France. A 320-C is also on order for delivery in the second half of 1965. The airline's fleet of 707s will then total 26. Altogether, 29 7O7-32O/32OB/32OC have been ordered by Air France, but three have been lost in accidents. Sonic Boom Tests on Buildings were begun by the FAA on Novem- ber 18 and will continue until December 17. A second phase may be conducted in the new year. Site of the trials is the White Sands Missile range in New Mexico. A report on the six-month long Oklahoma City tests will be published before the end of the year. New Chairman for IAC Mr V. Shankar has been appointed to the chairmanship of the Indian Airlines Corporation following the resignation of Mr Satish Chandra. Mr Shankar, who was an earlier chairman of the corporation, is secretary to the Ministry of Civil Aviation and will continue in his duties at the Ministry.
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