Pressure likely on B.E.A.

Press, Volume CXI, Issue 32677, 5 August 1971, Page 13

Pressure likely on B.E.A.

(N.Z.P.A.-Reuter—Copyright)

LONDON, August 4. A hard-selling American pressure campaign to persuade the Stateowned British European Airways to buy the American Lockheed TriStar, with its RollsRoyce RB2II engines, is being forecast in London.

Months of campaigning in the United States Congress to save Lockheed —and, with it, the jobs of 40,000 British workers—ended with a Senate decision to guarantee a SUS2SOm bank loan to enable the TriStar project, to continue.

It is no secret that the Americans, in return for their Government’s help, have been looking to one of Britain’s two State-owned airlines to show a gesture of good will and faith in the TriStar by placing orders for it.

The immediate long-term requirements of B.E.A. call for about 20 new aircraft similar in size and capability to the TriStar. An order of this size, when added to the 178 firm orders and options already obtained by Lockheed, would be regarded by the American company as a great help towards guaranteeing the economic viability of its project. 8.E.A., however, made it clear today that it has no intention of making an immediate decision one way or the other. “We do now know that we have a genuine choice from among three airbus developers —Lockheed, McDonnellDouglas and the European consortium,” a spokesman for the airline said. "We are in constant contact with all three, but it is unlikely we shall decide which to have before next year.” The British Government, however, already has a substantial financial stake in the future of the TriStar and will want its money back. It is risking about £l3om on the RB2II engine jn one way or

another, and although it may not control B.E.A.’s operating policy, it does control its capital borrowings and, as such, would be in a position to give or deny its approval when the airline wants to borrow money for a new fleet.

Government spokesmen have, however, made it clear that it would not place pressure on B.E.A. against its commercial judgment.

A Government statement on its plans for the future of the RB2II is expected to be made in Parliament today.