FlightGlobal.com
Home
Premium
Archive
Video
Images
Forum
Atlas
Blogs
Jobs
Shop
RSS
Email Newsletters
You are in:
Home
Aviation History
1968
1968 - 2586.PDF
768 AIR TRANSPORT... fUOHT International, 14 November /94J A Case of Fitness ARECENT RECOMMENDATION by an examiner of the USCivil Aeronautics Board on certain applications byBritish Eagle is important on three counts. Firstly, it deals with the question of whether the CAB will issue a foreign air carrier permit to a company which has few opera- tional facilities of its own, but relies heavily on those of an associated company—a question relevant to the non-IATA subsidiaries of some IATA members. Secondly, the recom- mendation underlines once again that many statistics relating to the British airline industry are available only from the proceedings of the CAB. Thirdly, it throws on the structure of the British Eagle companies which announced their closure last week. The Civil Aeroautics Board examiner, who was asked to recommend the transfer of the charter permit held by British Eagle International Airlines to British Eagle Aviation and to approve an inclusive-tour permit for the latter, has declined to do so, on the grounds that British Eagle Aviation, considered individually, was not "fit, willing and able" within the meaning of the Act to engage in foreign air transportation. British Eagle Aviation (referred to by the examiner as Aviation) had common management officers with BEIA (referred to as Airlines). It owned no aircraft, but dry-leased two Boeing 707-138Bs from Airlines at an annual rent of £684,000. "The agreement purports to give Aviation complete possession of the aircraft, but it appears . . . that Airlines was using the aircraft at the time of the hearing here in April for its trans- atlantic charter service. Aviation has no present plans for acquisition of additional aircraft." The administrative offices of Aviation in London did not appear, the examiner says, to be separate from those of Airlines. A sales staff of four was engaged in London, supported by ten administrative and clerical staff. Aviation states that it had 48 aircrew, including 24 pilots. Revenue earnings of Avia- tion in 1967 are broken down by the examiner thus: group charters, £819,131; inclusive-tour charters, £28,698; freight charters, £13,171; total, £861,000. The company's balance sheet at October 31, 1967, shows total assets of £212,970, current assets of £16,903, advances made to Airlines, £195,595; cur- rent liabilities, £7,803; capital and reserves, £205,167. The profit and loss account of Aviation for the year ended October 31, 1967, shows an operating loss of £189. The operating expenses of £165,199 included, inter alia, depreciation and interest, £29,400; aircrew salaries and expenses, £39,400; and a general overhead salaries and wages item of £14,700. Giving his reasons for recommending the rejection of the British Eagle application, the examiner says that the evidence showed that Avition did not itself have sufficient substance to be considered independently as "fit, willing and able" within the meaning of the Act to perform foreign air transportation. "Rather, the record demonstrates that Aviation and Airlines are, in effect, a single corporate body owned and controlled by the Bambergs, and that a prime purpose for initiating this proceeding was to enable the Bamberg interests, through Air- lines, an IATA member, to remain affiliated with IATA, and through Aviation, a non-IATA carrier, to engage in split charters and inclusive-tour operation which are foreclosed to IATA members." The examiner says that many facts showed Aviation's fitness and ability to be dependent on the fitness and ability of Air- lines (which was not disputed), for example, in that many man- agerial officers held similar offices in both companies. Aviation had no aircraft, and the rentals for the two 707s would have far exceeded the company's revenue for the first ten months of 1967. "Aviation's exhibits set forth a substantial list of employees . . . however, it is difficult to reconcile [this] with its profit- and-loss statement. ... If the £39,400 item refers only to flight crews and excludes cabin staff, Aviation maintained its flight- crew members for ten months at the exceedingly low level of £821 per member, salary and expenses." If cabin crews were included as well, says the examiner, the sum came to an "incredible" £358 per crew member. "The only logical inference is that the employees listed were, in large part, employed or paid by Airlines." The examiner notes the fact that Aviation had a British Air Operator's Certificate, and had over the years been issued with numerous ATLB licences, for the granting of which such factors as finances, resources and experience, indicative of fitness and ability, are taken into account; but he adds that the CAB is not bound by British determinations and is required to make an independent assessment of fitness and ability. The examiner's recommendation, together with a British Eagle appeal against it which is supported by the Bureau of Operating Rights, is now before the CAB but will probably be withdrawn following the closure of the airline. BOADICEA IN ACTION AFTER four years of development, BOADICEA (British Overseas Airways Digital Information Computer for Electronic Automation) went into service formally on November 7 with an exchange of messages between Sir Patrick Dean, the British Ambassador to the USA in New York, and Mr William Rodgers, Minister of State, Board of Trade, in London. Three offices (in London, Miami and New York) were connected to the system last month, and during the coming six months all of BOAC's 220 booking centres throughout the world should be connected. BOADICEA will do much more than its ticket-reservation work and will eventually handle virtually every aspect of BOAC's operations. BOAC to Osaka Three return flights a week to Tokyo and Osaka by way of Anchorage are planned by BOAC to begin on March 31, 1969. The flight time, 19hr, will be 8hr shorter than the present Asian route. Boeing 707s will be used. At the same time BOAC expects to increase frequency on its mid- Pacific route (between Hong Kong, Tokyo, Honolulu and San Francisco) from three to five a week in each direction. Plessey Recorders for BOAC's 747s An integrated data system with 200 channels developed by the Plessey Co has been ordered by BOAC for its Boeing 747 fleet. The system has two recorders—one to meet the Board of Trade and FAA requirements for a crash-surviving record, and the other' to store information on the performance of the aircraft and its systems for later analysis. NYA Goes STOL Using two DHC-6 Twin Otters on lease- purchase from the distributors, Miami Aviation Corporation, New York Airways starts STOL services on November 15 between the three major New York airports. The carrier will continue its Boeing-Vertol 107 helicopter service to and from the Wall Street heliport, but the new services are part of a programme to expand operations and improve finances. Plans for Concorde's First Flight The initial flight of Concorde 001, of about 35-45min duration, will be made with the landing gear extended and with the nose kept in the lowered position. The speed range will be 160-250kt and the maximum altitude will not exceed 10,000ft. A dummy approach will be made before the final circuit and landing at about 150kt. These details were given recently by M Andre Turcat, director of flight testing at Sud-Aviation, who will command 001 on its first flight.
Sign up to
Flight Digital Magazine
Flight Print Magazine
Airline Business Magazine
E-newsletters
RSS
Events
