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Aviation History
1968
1968 - 0041.PDF
fLICHT International, II January 1968 43 AIR TRANSPORT US CURBS WILL HIT EUROPE FURTHER gloom among airlines followed the warning by the President of the USA last week of measures proposed to bring about an improvement in the country's deteriorating balance-of-payments problem. The President not only appealed to Americans to avoid inessential travel—he hinted also at positive restrictions on trips outside the USA. There has been little indication yet as to what form such restrictions might take, but the most likely methods would be to impose a per capita departure tax, or to lay down maximum currency allowances for foreign travel. The second method would resemble that at present in force in Britain, and which has already caused European airlines a few sleepless nights (see the comments of BEA's chairman, reported in Flight for last week, page 10); but the amount allowed to American tourists would probably be considerably greater than the £50 allowed to Britons. Observers of the US political scene have predicted a good deal of difficulty in getting the necessary legislation "through Congress, partly because of the delaying tactics of those whose interests are affected. Another important factor is the reaction, in election year, of a public unaccustomed to such measures. Nevertheless, even in the absence of legislation, the President's appeal alone is likely to have a noticeable effect. For the North Atlantic carriers, any reduction in the number of American passengers would prove embarrassing at a time when there is a tendency to surplus capacity and when load factors are falling (see Flight for last week, page 7). The average fell from 71 per cent in 1966 to 66 per cent in 1967, and individual airlines recorded falls of up to 11 per cent. With the number of American passengers running at perhaps half of the total, the possible effect of stringent travel curbs is clearly grave. Moreover, such restrictions would last at least two years, into the early stages of the next round of re-equipment. Least effect of all from the US financial situation is likely to be felt in the chatter market; Caledonian Airways, for instance, has said that no ill-effects are expected in 1968, since most of its contracts are already signed, and are subject to cancellation terms. An increasing part of charter operations are concerned with the carriage of ethnic groups, and these are considered less vulnerable. Currency restrictions would have rather less effect on charter operations than on the scheduled carriers, while a departure tax would hit the charter airlines most of all. SECOND CHANCE FOR EAGLE THE Board of Trade has ordered a re-hearing by the ATLB of the application by British Eagle for increased frequencies on the Heathrow London-Glasgow domestic trunk service. A re-hearing was recommended by the commissioner, Sir Henry Smith, in his report following the appeal by Eagle. This report was dated October 30; the decision of the BoT was not announced until January 3. The ATLB's decision, refusing Eagle's application, was dated June 19; the appeal, lodged on July 17, was heard on October 19. The decision by the Board of Trade, even though this was recommended by the commissioner, has been made in spite of the fact that it is still (presumably) Government policy not to approve increases in British domestic trunk frequencies. On February 17, 1965, Mr Roy Jenkins, the then Minister of Aviation, in the course of a licensing policy guidelines state- ment in the House of Commons, said that he did not think it right to offer the independent airlines "the prospect of an unrestricted or extended frequency in the near future" on the domestic trunk routes. This statement of policy, which caused Eagle to pull out from domestic trunk operation, has never been officially reversed. The question of the amount of new evidence introduced at appeal hearings is the subject of a comment in the commis- sioner's report. He writes: "Although the regulations provide for the calling of fresh evidence . . . there must, in practice, be a measure of restraint . . . if the proceedings are not to be transformed from an appeal hearing into the initial hearing of a fresh case. The calling of ten witnesses, as in this case, none of whom appeared before the Board, is very apt to place the commissioner in a difficult position and may, indeed, defeat its own object." In his recommendation, the commissioner says Representatives of seven air-taxi operators flew into Heathrow London late last month for a meeting with BEA to finalise an agreement between the airline and the Air Taxi Operators Association for through bookings to and from any of the 250 landing strips in the UK. The visitors' aircraft are seen here at BEA's engineering base. Among them can be recog- nised (right row) a Truman Aviation Piper Twin Comanche, Gregory Air Services' Piper Aztec and Twin Comanche, and a Polyfoto Air Taxi Services Twin Comanche; and (left row) a Northern Executive Aviation Aztec; a Mid-Fly Aztec; and the demonstrator HS.I2S used by Gregory. The two other, partly hidden, Twin Comanches in the picture are also those of Polyfoto ATS
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