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The Wayback Machine - https://web.archive.org/web/20121024035524/http://www.flightglobal.com/pdfarchive/view/1974/1974%20-%201207.html
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Aviation History
1974
1974 - 1207.PDF
[HLDSffinr ir\JTERI\JATIOI\IAL Published by IPC Transport Press Ltd © IPC Business Press Ltd 1974 Dorset House, Stamford Street, London SE1 9LU Subscriptions: UK, £12 p.a. Overseas, £10 30 p.a. United States airspeeded, $31-20 p.a. B. J. F. Nason, Oakfleld House. Perrymounl Road, Haywards Heath, Sussex RH16 3DH: Tel 0444 53281 Subscriptions are zero-rated for VAT The Court failure Thursday 22 August 1974 Number 3415 Volume 106 Founded in 1909 First aeronautical weekly in the world Official organ of the United Service and Royal Aero Club Telephone: 01-261 8070 (Editorial) 01-261 8081 (Advertisement Sales) 01-261 8392 (Advertisement Production) Telegrams/Telex: Bisnespres Ldn, 25137 Publishing Director Maurice A. Smith, DFC Advertisement Manager David Holmes Assistant Advertisement Manager (Europe) Jeremy Miller International Business Press Associates [lb Member of the Audit Bureau of Circulations |ABC1 Court Line's collapse is the end of £50 full-board in Palma fort nights which over the last two years have benefited the public more than they have the airlines and travel trade. Court's debts, including at least £7 million owing to 100,000 disappointed holidaymakers, must be some £15 million. Assuming that Court has carried eight million passen gers in the last five years, every holiday has averaged £1 below cost. When minor components fail, spirits can be fortified with the thought that the primary struc ture is sound, but Court and Clarksons were among the lead ing package-tour operators. Their collapse calls for a fundamental reappraisal by the Civil Aviation Authority (CAA) of the candy floss method of airline financing. There is nothing immoral in covering last year's costs with next year's income. But when capital cards are low, or mort gaged, and the gamble fails, the house of cards falls and with it go the holidays of 100,000 trust ing people. For 10 years or more the pack age holiday business has boomed. The confidence of the public, the backers and government regula tors was justified. The marketing of airline seats coupled with Mediterranean hotel beds has given tens of millions of ordinary people holidays once accessible only to the privileged. Ten years ago Autair Inter national became the wholly- owned subsidiary of the Court Line shipping group. It had been scratching a living out of scheduled Ambassador services from Luton to Blackpool, and Viking day charters to the Dutch tulip fields. A new management swept all this away to specialise in package holidays. Gaily coloured One-Elevens—all leased and two more every year—were financed on the cash promise of the follow ing summer. And the cash flowed in. Court got together with the Clarksons Travel Group, taking them over to smash the competi tion and especially Thomsons by "supermarketing" Jumbo-jet seats at discounts of up to 20 per cent. The decision to order TriStars, costing five times more per seat than a competitor's ex-Northwest 720Bs on the same Luton apron, was bold indeed; but it was a reasonable gamble assuming that market expansion continued to fill every seat. It did not do so. All in the trade, including the CAA, must have understood the inevitable consequence of con tinuing to sell £25 flights for £20 and less. On top of this desperate competition came inflation, hyper inflation, doubled fuel prices, a three-day week in the key book ing period, a sinking pound, coups in Portugal, Cyprus and Greece. Neither the takeover of Horizon Holidays to protect book ings, nor the enforced sale to the Government of Court's shipyards could compensate. The CAA licenses airlines and travel organisers on behalf of the public and it must bear a share of the responsibility. The CAA is still flying the airline economy in cloud with inadequate instrument readings. Who owns the aircraft? What are the financial terms? Editor J. M. Ramsden Assistant Editor Hugh Field International Editor Mark Lambert Technical Editor Michael Wilson. BSc. CEng. FB1S. AFRAeS Assistant Editor Technical) Andrew Holton. MSc Editorial Staff Brendan Gallagher Charles M. Gllson Ian R. Goold Charles Heathcote-Smith Mark Hewish David Kent Nigel H. Moll Bill Sweetman Air Photography Tom Hamlll What costs are capitalised over what period? Exactly how are interlocking companies related? All this information should be public, as it is in the USA. It is doubtful whether Lord Boyd-Carpenter and his team get such information even privately. The financial data which the CAA does obtain, in commendable efforts to get better readings, is insufficient and out of date. Mr Peter Shore, the Secretary of State for Trade, apparently still maintains that the truth about Court Line's finances was rightly protected from public disclosure by Section 31 (1) (b) of the Civil Aviation Act, 1971. This con tinuing policy of Government- approved secrecy, which begets financial unprofessionalism, is the true bankrupt in this case. IN THIS ISSUE World News Air Transport Light Commercial In the Air: Jaguar—cat with claws Defence Industry International Private Flight Gatwick 1974 Avionics Spot Market Survey No 7: A market in Russia? Propulsion: Turbomeca profile Letters Spaceflight Straight and Level 196 198 206 207 211 215 216 218 220 221 223 227 228 228a Front cover: Production Jaguar on acceptance test flight from BAC's Warton airfield. "Flight's" assistant editor flew a Jaguar recently and his impressions are described in an article begin ning on page 207. The significance of its Adour engines to France's Turbom§ca is also de scribed, beginning on page 223.
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