AIR TRANSPORT

Grey River Argus, 16 March 1945, Page 2

AIR TRANSPORT

POST-WAR COMPETITION BRITISH GOVERNMENT PROPOSAL LONDON, March 14. The British Government in a White Paper stated it has decided to establish three main air transport corporations. One will be responsible for each of the following groups of services: (1) Commonwealth air routes with a trans-Atlantic service to the United States, China, and the Far East; (2) European air routes and British internal services; (3) South American route. Commonwealth and Atlantic routes, with an ultimate extension to China, will be. assigned to 8.0.A.C. European and Internal United Kingdom routes will be assigned to the new company, in which the participants will be the railway companys, short sea shipping lines, travel agencies, and the British Overseas Airways Corporation, and such other pre-war operators as desire to operate. The possibility of forming companies subsidiary to operate these routes will not be excluded. The South American route will be assigned to a new company in which the majority of the participants will be those British shipping lines operating to South America who have become associated together as British Latin America Airlines Limited. No overseas corporation will be in close relation with correspondening operators in Commonwealth countries, but on many routes a valuable contribution can be made by British shipping lines, which will be given an opportunity of becoming associated Railway companies, and their associated air companies in the past have successfully 7 operated the great majority of the internal services, while the short sea* shipping lines have built up a valuable organisation and goodwill in sea routes to Europe. These European and internal air routes, however, are likely to be more lucrative than some of the Commonwealth routes are likely to be to 8.0.A.C. as a direct operating corporation. The Government, therefore, thinks it right that the financial interest of 8.0.A.C. in the new corporation to operate the European and internal routes should be assessed in the light of this consideration as well a*s in the light of the contribution it can make to the new corporation. 8.0.A.C. will therefore, have a substantial interest in the new corporation.

As regards the South American route, it is proposed that 8.0.A.C. should participate in the capital and management, but its share will be smaller than in the European and internal corporation. The general policy is that both interests should operate as far as possible without subsidy. Every possible opportunity will be given officers and men of the R.A.F. to take service with th e corporations and the Government will make it a condition that the terms of service of these corporations shall be those of a ‘‘model employer.” The appointment of members of the 8.0.A.C. will be vested in Lord Swinton, Minister for Civil Aviation, who will also approve appointments of 8.0.A.C. representatives on the Boards of the other two main operating companies. He will also approve the directors. British aircraft will be used as soon as available. Orders have already been given for a number of civil types. The Government is planning as rapidly as war exigencies permit to complete the network of the Commonwealth services in full co-opera-tion with the other Commonwealth Governments. Most comment is favourable on the. governments white paper on civil aviation.

“The Times” editorially describes it as “a bold constructive document, which will guide the course of British air transport, second to none.” The railway companies stated they welcomed the opportunity of associating with their partners, all of whom could contribute from their experience and organisation to the success and efficiency of British aviation. Shipping companies also stated they, welcom_ed the proposals. Mr. John Booth (chairman of the British-Latin America Airlines)) congratulated the minister on, “a line fast piece of constructive planning.” Opposition has come from four independent operators. These are Air Dispatch Limited. Allied . Airways Limited, Atlantic Coasts Airlines, and British American Air'.Services. They have issued a statement saying that the proposals are unsatisfactory, and that they were not consulted until. February 14, when ■ a plan was already agreed on between the minister and the ra'ilwaycompanies, shipping companies, and the 8.0.A.C., and approved by the War Cabinet. They considered they had an incontestable right to resume their services, as soon as possible, and should not under presure be included within a monopoly. “The Daily Mail” says; The whole Government’s civil aviation proposals are in danger of being negativated through the lack of aircraft. The plan has no tools. Those airline operators who would be established in business by the Government have already discovered that, at the present rates of production, they cannot expect sufficient of any of th e new British planes before the end of 1945. In many parts of the world, very possibly in-' eluding Europe, competitors will be' flying modern liners, fresh from the' American factories, which have maintained their production ' throughout the war. British production ceased entirely in 1939, and measures taken to resume production in 1944 have not made progress and w&s predicted. Converted Lancaster bombers, known as Lancastrians, now are about six months behind delivery for projected interim airmail services between the United Kingdom and Australia. This service should have opened; at the beginning of March. Theffon-s ‘ . .*y 5