AVIATION IN BRITAIN

Press, Volume XCVI, Issue 28429, 8 November 1957, Page 20

AVIATION IN BRITAIN

Merging Of Firms Advocated

(N.Z. Press Association—Copyright) (Rec. 10 p.m.) LONDON, Nov. 7. The rationalisation of Britain's aircraft industry by amalgamations was advocated at a meeting of the Air League of the British Empire by Lieutenant-General Lord Weeks, chairman of the Finance Corporation for Industry and a director and former chairman of Vickers, Ltd.

The experience, financial resources and skilled manpower needed to build up civil aircraft business, he said, meant that probably only about three companies in Britain could compete in the world markets for medium to large civil aircraft with any hope of getting orders. The proper course was amalgamation of some of the smaller units "by their bigger brothers."

As far as airframe construction was concerned, someone had to ensure that technical resources were properly used and that the brains were in the units which had the equipment and finance necessary to use them fully.

Amalgamation must therefore be highly selective and should also apply tn engine markets. Lord Weeks rejected the idea of nationalisation of the aircraft industry which, he said, would be a "ghastly solution.” The industry, he added, could not undertake rationalisation entirely on its own. The Government must help. This could be achieved by building up Transport Command not only to meet Royal Air Force requirements, but also of national acceptance of the need to have Government support for British aviation. The Government should say now that it would order for Transport Command batches of new airliners which were to be brought out. Lord Weeks said the aircraft industry could not exist in a com|petitive world without adequate | funds being allocated for research and development. He did not know what could defeat lowI dying supersonic bombers so he I hoped a reprieve for them might be possible.