OPERATION OF AIRLINES

Press, Volume LXXXIII, Issue 25306, 4 October 1947, Page 9

OPERATION OF AIRLINES

COSTS UNDER BRITISH STATE CONTROL GRANTS RECOMMENDED FROM EXCHEQUER (N.Z. Press Association—Copyright) (Rec. 10.30 p.m.) LONDON, October 3. It does not appear possible at present to ascertain the comparative costs of operating British commercial airlines under nationalisation, says the report of the Select Committee on the Estimates, which examined the provisions for expenditure on these airlines. The committee recommends the Government to make the following grants from the Exchequer for the year ending March, 1948:—British Overseas Airways, £5,000,000; British European Airways, £2,250,000; and British South American Airways, £250,000. The report says the estimated cost of ground services and expenses on the Empire routes shows an increase of £1,315,000 above the previous year. More than £1,000,000 of this figure is for works on the African route to fit airfields for Tudor II and similar types of aircraft.

The report noted that landing fees absorbed from 40 to 93 per cent, of the expected revenue in the internal services, compared with 1J per cent, on the Continent.