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Aviation History
1967
1967 - 2152.PDF
fLIGHT International. 9 November 1967 747 AIR TRANSPORT BEA takes over BKS and Cambrian THE TWO BRITISH private airlines in which BEA already havea financial interest, BKS Air Transport and Cambrian Air-ways, have, as forecast by Sensor in the September 14 issue, become wholly owned subsidiaries of British Air Services. This is <the holding company formed last March (see Flight for March 30, page 468) to look after BEA's financial interests in the two independents. BAS, with £1 million issued capital, is being reconstituted so that its shares are now about two-thirds BEA and one-third made up of BKS/Cambrian shareholdings. All financing for the two airlines will now be channelled through the holding company. BEA has been a shareholder in BKS (increased last Novem- ber to 50 per cent) since June 1964, and in Cambrian (33i per cent) since 1958. BEA will have complete and absolute control of all major policy, but the existing managements will continue to run the two airlines, wihich will retain their identities. BEA will not interfere with the day-to-day management and Sir Anthony Milward is known to have said that the Welsh people can rest assured that their airline will continue to retain its Welsh identity. The kind of rationalisation now possible could, for example, mean that a Viscount can go to Newcastle in BKS oolours and then do a trip to the Isle of Man in Cambrian colours. Such things as traffic handling will also be rationalised. So far as charter work is concerned, the implica- tions are obvious: tfhe two companies could offer a big BEA- backed challenge in the British market. The new financial backing will provide a shield for both airlines in this economically difficult period and give them the means to plan, under BEA guidance, their re-equipment pro- grammes. Although the possibility that British Midland might be taken over has been open knowledge, no such move is imminent at the moment. BEA have, however, been asked by the airline to consider taking a shareholding (such as was earlier taken in BKS and Cambrian) and this possibility is being discussed within BEA. BMA have so far failed to find the means of financing an order for two BAC One-Eleven 300s which is still pending. The revised board of directors of BAS now includes members from both BKS and Cambrian, whose boards, as before, include BEA representatives. The BAS directors are: A. C. Ping (chairman), C. A. Herring, P. C. F. Lawton and P. R. V. Walmsley, representing BEA; G. T. Cantlay, J. H. Davies, L. B. Elwin, representing Cambrian; C. J. Stevens and A. G. W. Scott, representing BKS; and C. F. Hughesdon (deputy chairman of Stewart, Smith and Co, Lloyd's Brokers, and previously a director of Cambrian). The boards of Cam- brian and BKS now include W. R. Collingwood of BEA who has replaced P. C. F. Lawton; P. R. V. Walmsley is now a director of BKS, but not of Cambrian; and C. A. Herring is a director of Cambrian as well as of BKS. Sir Anthony Milward, chairman of BEA, commenting officially last week on the newly formed group, said: "In BEA we know only too well the marginal economics of the short- haul air transport business, but we recognise the need and the scope for the development of these services and we believe we can do this in the most practical and efficient way by even closer association with Cambrian and BKS." The chairman of Cambrian, Mr John Davies, said that the change will ensure continuity of development for the airline and its ability to meet the traffic demands, and that the requirements of Wales and other areas served by the airline "will receive full and proper attention." Mr C. J. Stevens, chairman of BKS, said that the new group, which has an annual turnover now of £8 million, "will represent a sound enterprise with the considerably increased financial and techni- cal resources essential to meet the requirements of the ... air transport industry." He added that the new venture, whilst assuring continued development, would "maintain the personal links and regional associations already established." (For the effect of this new situation on the British Independent Air Transport Association and its future, see page 749.) As recorded in last week's issue, page 707, the third Fokker F.28 Fellowship (A3, PH-MOL), made its initial flight from Schiphol Airport, Amsterdam, on October 20. It was airborne for Ihr 3lmin and Ms picture was taken during the flight. So far the first two F.28s have accummulated more than 250 flying hours
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