CABINET TO INVESTIGATE B.O.A.C. LOSSES

Chronicle (Levin), 12 January 1948, Page 5

CABINET TO INVESTIGATE B.O.A.C. LOSSES

Received Sunday, 7.0 p.m. LONDON,, Jan. 11. According to the politieal correspondent of the Sunday Dispatch, Sir Stafford Cripps, Mr. A. V. Alexander and Mr. G. R. Strauss will forni a Oabinet committee to investigate B.O.A.C. losses. The inquirv will follow a report to Cabinet on January 13 from Lord Nathan, Minister of Civil Aviation, in an action to amalgamate the opefating branches of the three air corporations. The report will propose that B.O.A.C. use the Tudor I on the Xorth Atlantic route. The report is likely to eause a storm in the industry and may be Lord Nathan 's swan song as Minister. The Observer's politieal correspondent says publ'ication is now expected towards the end of January of a report on Tudor I by the committee established after B.O.A.C. refused to take delivery of the Tudor I on the ground that it was hot a commercial proptfsition and would involve heavy losses on the North Atlantic route. This report is believed to recommend the Tudor 1 for the North American routes subject to certain conditions. The correspondent understands that the Gdvernment in a statement to be issued coiu-un'ently, accepts this opinion but offers to subsidise B.O.A.C. for anv loss incurred through flying the Tudor I. The Sunday Express says first accounts of british South American Airways are expected to show a pfofi£ of about £40,000 for the eight months covered— about £4 per passenger. Tht coxnpany's chief exec-utive, Air ViceAlarshal D..C- Bennett, revealed that Ihe Government liad given no financial ' aid in the development of the routes.