Canadian Aircraft For B.O.A.C.

Press, Volume LXXXIV, Issue 25550, 19 July 1948, Page 6

Canadian Aircraft For B.O.A.C.

Heavy losses suffered by British nationalised airlines have no doubt dictated the Government’s decision to buy a number of Canadian aircraft for service on the British Overseas Airways Corporation’s routes. The diplomatic correspondent of the “ Daily Herald ”, who reports the decision, correctly describes the Government’s policy as a short-term one, and designed to bridge the gap in British production of suitable passenger-carrying types. In the year ended March 31, 1947, the three British air corporations incurred a net loss of about £ 10,000,000, and an unofficial estimate for this year gives the probable deficit as approximately £9,750,000. Because of these losses the Government appointed a Cabinet sub-committee to consider the provision of aircraft for the three corporations, British Overseas Airways Corporation, British European Airways, and British South American Airways. The sub-committee had to decide whether the corporations should go on flying only British aircraft on all the main routes except the North Atlantic, where American Constellations have been employed for some time, or be allowed to buy aircraft abroad. As “ The Times ” said last month, the “ fly British ” policy gives encouragement to British aircraft and engine firms, important for national defence; and to buy aircraft abroad means paying more dollars to Canada or the United States. But to go on flying British aircraft, some of them most uneconomic to run, means large deficits for taxpayers to make good, perhaps for another four or five years, until the new types now being developed in British factories are ready for use. Air Commodore L. G. S. Payne, air correspondent of the “ Daily Tele- “ graph ”, says that British airlines will never make profits on longstage air routes with existing types of British commercial aircraft because these cannot carry economic payloads. He adds that it is no mere coincidence that the only 8.0.A.C. services not incurring heavy losses are the North Atlantic services operated with Constellations. These considerations must have influenced the sub-committee to recommend the purchase of Canadian aircraft, which are presumably the Canadair Four type, adapted structurally from the American Douglas Skymaster, but with Rolls-Royce Merlin engines. These aircraft are being operated ; successfully on the North Atlantic ’

route by Trans-Canada Airlines. 8.0.A.C. is the corporation which operates the long-range routes, and it is also the one which has incurred the heaviest losses. The purchase of more economical types of aircraft may enable it to stabilise its annual deficit at about £5,000,000 compared with £8,000,000 in 1946-47, and approximately £ 6,000,000 in 1947-48. While the Government’s decision may be a blow to the prestige of the British aircraft industry, and may cause manufacturers to lose work and skilled workers, it is obvious that the British corporations cannot continue to make large, and perhaps crippling losses by carrying on with out-of-date, wasteful, and uncompetitive aircraft. One possible consolation is that the Government’s decision may not involve the payment of more dollars to Canada. When a director of Canadair Ltd., Mr J. P. E. Collette, visited New Zealand last year, he told a weekly aviation magazine that Canada was not demanding the immediate payment of dollars for her airliners, and an offer had been made to 8.0.A.C. to arrange a loan for the supply of upwards of 60 Canadair ■ Fours.