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Aviation History
1964
1964 - 0063.PDF
46 FLIGHT International, 9 January 1964 AIR COMMERCE SIR GILES MEETS THE PRESS ON his second day in office BOAC's new chairman, Sir Giles Guthrie, met the Press in the utilitarian surroundings of a training classroom in Comet House at Heathrow. Most of his answers to questions might reasonably have been: "You must ask me that again in six months' time." In fact, he gave straight and sometimes remarkably frank answers to questions. To only one did he say "Ask me later," and that was on the question of what percentage of BOAC's routes were likely to be found uneconomic. During his first six months, he said, his intention was "not to ask what people thought before but to have a new look." Asked whether it would be possible to separate out the profitability of each route, he replied with an emphatic "yes." He had, he said, asked the corporation's planning manager, Mr Winston Bray, to complete a review for him to show which routes were operating at a profit, those which could be made profitable within a reasonable period, and those which would, so far as could be seen, never make a profit. If the corporation were directed by the Minister to run uneconomical routes the losses incurred on those routes would be separated out and shown separately in the balance sheet. On the question of cuts in the VC10 fleet he thought there had been a lot of loose thinking about routing—"we want to get the route structure right and then we shall know how many aircraft are required." Three-quarters of an hour's questioning by a large gathering of air correspondents revealed Sir Giles as a man of candour who gives straight rather than smart replies to questions. The only mildly uncomfortable moments were when he said that he found some satisfaction in having started in the airline business at the age of 22 and had now reached the top by the age of 47; and when he said, when asked how he was going to do the jobs of both chairman and managing director: "I am only 47 and perhaps a little more robust than some of the other people you have mentioned." Someone asked him what sort of hours he expected to work. "If you want a quick answer, I would say sixteen hours a day—but many other people do that." Asked whether he was going to see the Corbett Report, he said that he had seen only those parts that the Minister had been prepared to show him. He had never met Mr Corbett, who had looked at only a few particular sections of BOAC. "I have got to look at a good deal more." He thought that the engineering base was remarkably compact and that its cost-reducing efforts were "just about on target." Sir Giles reminded bis audience that it was BOAC's chief engineer who gave to Mr Corbett's consultants the estimate of reduced engineering costs (£4m). The strongest hint of major change to come out of the whole conference concerned relations between BOAC and BEA. "What I hope will happen," he said, "is that we shall examine every activity of both corporations to see how it will be possible to assist each other." This was not new, he said; it had been happening all the time. When reminded that the White Paper had not been very impressed with the fruits of co-operation between the BOAC and BEA chairmen, Sir Giles said that it was the wish of both himself and Anthony Milward, BEA's chairman elect, to see that both airlines were making money, and "with the right spirit I don't see why this co-operation between us shouldn't be a great success. We both intend that it should be." The partnership between himself and Mr Milward would make possible the discussion of joint problems and joint policies. "It is the first time that both chairmen have been on each other's boards, and this is rather a material matter." Whereas in the past there may have been separate discussion by each board of the same matter, neither knowing what the other was saying, this could not happen again. He was quite decisive in his views on the accumulated deficit, the writing off of which "must be done." But he said it would be wrong to write off £80m now only to find in a year's time that the figure should have been £100m. Part of his job, he said, was to find out what the extent of the deficit really was. "To give the new BOAC an opportunity to operate profitably, it may be necessary to add to the figure of £80m." Sir Giles had evidently not had time to look into BOAC-Cunard during his first day in office, for he said in answer to a question: Sir Giles Guthrie arrives at bOAC Headquarters, London Heathrow, on the morning of January '> 1964, to be met by board members Mr Keith Granville (left), Mr Gilbert Lee, and (right) Mr Kenneth Staple. At a news conference the following day (see this page) he thought there was no mystique about the airline business, which was not much different "from selling socks or anything else" "I have known Sir John Brocklebank since schooldays. BOAC- Cunard is an extremely good arrangement and it will continue to make profits." Someone queried the profits and, after consultation, he said amid laughter: "That was slightly advance information." Sir Giles thought that a lot of the work already done in reviewing BOAC's activities would prove of advantage in the preparation of his plan. There might, he said, be a different approach to the Minister than the one that has gone before. He disclosed that a senior civil servant (understood to be Lord Normanbrook, former Secretary to the Cabinet) had accepted a post as unpaid consultant to Sir Giles Guthrie to advise on the way BOAC's plans are pre- sented to the Government. (There is reason to believe that previous chairmen have put forward ideas which were basically unacceptable politically. Sir Giles evidently feels that he needs the advice of an experienced public servant to know just what will or will not "wash" with the Government.) Sir Giles was asked whether the Press were going to be allowed to see his plan. He said: "That is not my decision, it is the Minister's. I don't like things kept in the dark. BOAC has nothing to hide, and I hope it will be possible as the plan evolves to keep you informed." Asked whether the plan would be sub- mitted piecemeal or as a whole, he said that he would be keeping in constant touch with the Minister though "in the end I hope it will be in the form of a complete report." Sir Giles's philosophy on prestige emerged. "Any large company, if it is doing well and making money, becomes a prestige corpor- ation ... I want to say that BOAC's prestige will come from safety and service, which exist already, and by doing these things in the black and not in the red." —AND HIS MESSAGE TO 8TAFP IN BOAC News for January 2, the new chairman writes:— "None has relished the sorry dispute of recent weeks but that is behind us and now we must all strive for the successful future of BOAC. " We are in a most competitive business. There can be no place in the corporation for any one of us who does not have pride in its past accom- plishments and a deep faith in its future. There are some fundamental and thorny problems . . . So let us look afresh at the corporation in the coming weeks and then prepare a practical plan . . . "Are we a prestige or a commercial airline ? A lot of nonsense has been talked! There is no prestige in owning a Rolls-Royce if it takes you to the bankruptcy court. There is no prestige in being the national carrier if it costs the nation millions. But we shall enjoy tremendous prestige through- out the world as soon as we consistently take good care of passengers at no cost to the taxpayer. "Is BEA taking over BOAC? Not on your life! But greater co-oper- ation between the sister airlines will benefit both . . . "Is this new chap a Beeching? A dictator? What a description! He is an ordinary human being with an aviation and financial background, who in the months ahead will ensure that he has around him, at Board and management level, men of high calibre determined to lead BOAC on from a position of promise to one of complete success. Words again ? No! A start has already been made . . . In a fight, leadership can engender an atmosphere that breeds enthusiasm. I promise to do my best and I count on you for your support."
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