IMPERIAL AIRWAYS
TERMS OF NEW AGREEMENT WITH GOVERNMENT SUBSIDY. (Sydnev "Sun” Cable.) LONDON, January 25. A White Paper has been issued containing the new agreement with the Imperial Airways, Ltd., supplementing the agreement of May l&th, 1924, Detween the President of the Air Council and the company. The new agreement modifies the, orig inal -agreement by substituting for the minimum annual mileage of a million miles required to qualify for a subsidy a new composite minimum oi 425 million horse-power miles. It also provides that for the pur pose of reckoning this minimum every mile performed by marine aircraft shall count-as a mile and a half. This minimum requirement is to be met each year without any such arrangement as was contained in the original agree mernt for averaging mileage in the earlier years. The modifications are intended to encourage the employment of higherpowered machines, and consequently to enable the company to develop towards a self-Bupporting basis, as the subsidy decreases. It is also intended to prevent the development of oversea services falling into abeyance as the type* of marine airoraft hitherto used have been .found to have so high a cost of operation in relation, to their paying load that there has 'been Insufficient inducement to develop oversea services.
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Bibliographic details
New Zealand Times, Volume LIII, Issue 12355, 27 January 1926, Page 4
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210IMPERIAL AIRWAYS New Zealand Times, Volume LIII, Issue 12355, 27 January 1926, Page 4
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