BRITISH AIR COMPANIES

Press, Volume LXXXIV, Issue 25389, 12 January 1948, Page 7

BRITISH AIR COMPANIES

LOSSES BY STATE UNDERTAKINGS CABINET COMMITTEE’S INVESTIGATION (N.Z. Press Association—Copyright) (Rec. 9.30 p.m.) LONDON, Jan. 11. According to the political correspondent of the “Sunday Dispatch,” the Chancellor of the Exchequer (Sir Stafford Cripps), the Minister of Defence (Mr A. V. Alexander), and the Minister of Supply (Mr G. R. Strauss) will form a Cabinet committee to investigate losses by the British Overseas Airways Corporation and British European Airways. The inquiry will follow a report to the Cabinet on Tuesday from the Minister of Civil Aviation (Lord Nathan). In steps to amalgamate the operating branches of the three State air corporations, the report will propose that the 8.0.A.C. should use Tudor I aircraft on the north Atlantic route. “The report is likely to cause a storm in industry, and may be Lord Nathan’s swan-song as Minister,” adds the correspondent. The political correspondent of the “Observer” says that publication is now expected towards the end of January of a report on the Tudor I by a committee established after the

8.0.A.C. refused to take delivery of < the Tudor I on the ground that it was • not a commercial proposition, and . would involve heavy losses on the north Atlantic route. This report is believed to recom- , mend the Tudor I for the north Ame- ' rican routes, subject to certain condi- ( tions. The correspondent says he understands that the Government, in a statement to be issued concurrently, accepts this opinion, but offers to subsidise the 8.0.A.C. for any loss incurred through flying the Tudor I. The “Sunday Express” says that the first accounts of British South American Airways are expected to show a profit of about £40,000 for the ei£ht months covered —about £4 a passenger. The company’s chief executive, Air Vice-Marshal D. C. Bennett, revealed that the Government had given no financial aid in the development of routes.