World Survey of Civil Aviation UNITED KINGDOM BDSA U.S. DEPARTMENT OF COMMERCE (LH1*i ^'Uvi3K World Survey off Civil Aviation UNITED KINGDOM *«* TOr «* \ \ £ • U.S. DEPARTMENT OF COMMERCE BUSINESS AND DEFENSE SERVICES ADMINISTRATION For sale by Superintendent of Documents, U.S. Government Printing Office, Washington, D.C., 20402 - Price 15 cents r •;:■::,! This report presents detailed information collected by the United States Foreign Service on civil aviation in the United Kingdom. It is the ninth in a series and includes an extensive description of aircraft manufacturing and U.K. Government support of the aircraft industry. The U.K. aircraft industry is the prime competitor of the United States in world markets for aircraft and aeronautical products. This report evaluates the raw data and contains information on fleet composition and flight operations, and emphasizes marketing and investment opportunities. The reported consolidation of the U.K. aircraft industry poses a formidable challenge to the American indus- try. This report should contribute to our ability to maintain our world- wide lead. GEORGE DONAT Administrator Business and Defense Services Administration March 1965 iii Digitized by the Internet Archive in 2012 with funding from LYRASIS Members and Sloan Foundation http://archive.org/details/worldsurveyofcivOOunit yjfiieisis Page Foreword iii The United Kingdom 1 Role of Air Transportation 1 Aircraft Manufacturing 2 Manufacturers — Trade Association — Government Support. Aircraft in Use 9 Commercial Airlines 9 Service — Disposal and Reequipment Programs. General Aviation 11 Market Potential 11 Tiles United Kingdom Civil Air Fleet 13 U.S. Exports of Aeronautical Products to the United Kingdom, 1961-64 15 U.S. World Exports of Aeronautical Products, 1961-64 16 Editorial Note The following members of the U.S. Foreign Service supplied basic data for this publication: Thomas T. Carter, John S. Meadows, and Charles R. VanCott of the U.S. Embassy staff, London; and Seymour S. Goodman of the consulate office, Belfast. The publication manu- script was completed in the Transportation Equipment Division, Office of Industrial Equipment, Business and Defense Services Administra- tion, by Robert E. Liguori. Additional, detailed information may be obtained from the Transportation Equipment Division. The United Kingdom Role of Air Transportation The United Kingdom is served by an extensive domestic air transport net- work. However, owing to the high popu- lation density in southern England and the Midlands, which are conveniently served by a completely developed rail network, less than 1 percent of domestic travelers use air services. The insular location of the British Isles places the continental and interisland air services in a very competitive and im- portant position with combined rail, sur- face, and water transportation. Over 10 percent of all passenger traffic from Great Britain to the Continent, the Chan- nel Islands, Ireland, and the U.K. off- shore islands use air services. On the continental and Channel Island services, where the marine connections for boat- train and car-ferry travel are inconveni- ent and time-consuming, 40 percent of all travelers use air services. Cross-chan- nel and Channel Islands air ferry serv- ices for vehicular traffic amount to over one-third of all auto ferry traffic to and from the U.K. and are increasing their share every year. Air freight was less than 0.5 percent of total short ton miles flown in 1963. The Minister of Aviation is responsible for the promotion and regulation of all U.K. civil aviation, both foreign and do- mestic, and supervision of the develop- ment and production of all civil aircraft. He is advised by the Air Transport Li- censing Board, which is responsible for granting licenses for the operation of scheduled airline services; the Air Reg- istration Board, which supervises the de- sign, construction, and maintenance of civil aircraft and conducts the technical examinations for the licensing of aircraft maintenance engineers, flight engineers, and commercial pilots; and the Air Safe- ty Board, which continuously reviews the needs of safety in British civil aviation. The U.K. Government provides finan- cial assistance to British Overseas Air- ways Corporation — BOAC and British European Airways Corporation (BEAC), the two national flag carriers, in the form of lines of credit available in interest- bearing, redeemable loans from the U.K. Treasury. The United Kingdom has 6 interna- tional airports, 105 other major airports of which 68 are government owned, and 47 private airports scattered throughout the country. The United Kingdom is a member of the International Civil Aviation Organiza- tion— ICAO, the European Civil Avia- tion Conference— -ECAC, and Eurocon- trol. It is a signatory to the following civil aviation conventions: Warsaw (1929), Chicago (1944), Geneva (1948), and Rome (1952). The United Kingdom has also conducted bilateral air agree- ments with 59 countries including the United States (1946) and the Soviet Union (1957). Aircraft Industry Manufacturing There is an extensive aerospace manu- facturing industry in the United King- dom, which also receives financial as- sistance from the U.K. Government. This assistance is in the form of direct con- tributions, investment and risk sharing, and a capital equipment subsidy. The amount of direct contributions from the Government and investment and risk sharing by the Government depend largely upon the project and its value to the U.K. The financial assistance pro- vided to both the airlines and the in- dustry is designed to foster and encour- age the fly British policy. Manufacturers In the late 1950's, the British Govern- ment concluded that the then existing structure of the British aircraft industry, composed of a large number of relative- ly small companies, could not cope effi- ciently with expected future require- ments. Thus, as a result of Government pressures and inducements, the numer- ous British aircraft firms in 1959 were consolidated into five major groups that now produce most of the U.K. aircraft and aircraft engines: One large holding company (Hawker Siddeley) One private corporation (British Aircraft Corporation) specializing in fixed-wing aircraft One holding company (Westland Aircraft) producing all U.K. manu- factured helicopters Two aircraft engine companies (Rolls Royce and Bristol Siddeley) producing the bulk of British air- craft turbines The two fixed-wing aircraft groups ac- count for 80 percent of U.K. airframe production. Five small companies are responsible for most of the remaining 20 percent of airframe production. In the engine field, only one producer of piston engines (Alvis) and one manufac- turer supplying small aircraft turbines (Rover) remain independent. Hawker Siddeley Group The Hawker Siddeley Group, a public corporation, is a diversified holding com- pany that consists of 12 U.K. aviation companies, 1 U.K. aviation associate, 9 overseas aviation companies, 16 U.K. in- dustrial companies, and 2 overseas in- dustrial associates. Hawker Siddeley Aviation, Ltd., is a subholding company for 13 of the avia- tion subsidiaries of the Hawker Siddeley Group. Of these 13, the following are currently active in airframe production: A. V. Roe & Co., Ltd., has recently pro- duced the Shackleton, a four-engined maritime reconnaissance aircraft, and the Vulcan, a four-jet delta wing bomber, both for the Royal Air Force. The com- pany's latest product is the Avro 748 short/medium range twin-engined air- liner, which is in production and in air- line service. Blackburn Aircraft, Ltd., is engaged in military production of the Buccaneer, a twin-engined, naval strike aircraft. The DeHavilland Aircraft Co., Ltd., is primarily engaged in the production of civil aircraft, with the exception of the Sea Vixen, a twin-engined day and night all-weather fighter. DeHavilland built and flew the first commercial jet airliner, the Comet. Current production of civil aircraft includes the Dove, an 8 to 11 passenger twin-engined light transport; the Trident, a short- to medium-range tri-jet commercial airliner with seat con- figuration for capacity range from 75 to 101 passengers; and the D.H. 125, or Jet Dragon, a twin-jet executive aircraft with normal accommodation for 6 passengers and selling for $750,000 (flyaway). The Trident and the D.H. 125 are newest in the DeHavilland line of civil aircraft, making their maiden flights on January 9, 1962, and August 13, 1962, respec- tively. Folia nd Aircraft, Ltd., is engaged in military production of the Gnat, a sin- gle-engine lightweight fighter or fighter- bomber, and also a modified version of the Gnat for training purposes. Hawker Aircraft, Ltd., is producing the Hunter, a single-engine jet reconnais- sance fighter for the Royal Air Force — R.A.F., and the P. 1127, a VTOL (verti- cal take-off and landing) tactical strike /reconnaissance aircraft powered by a single lift/thrust ducted fan engine. Whitworth Gloster Aircraft, Ltd., is producing the Argosy, a four-engine pas- senger and freight transport for both civil and military use. Two versions of the Argosy are the Air Ferry, a car ferry version able to accommodate 8 cars and Earlier Publications in this Series WORLD SURVEY OF CIVIL AVIATION Africa. 1960. 57 pp. 25 cents. Japan. 1960. 8 pp. 10 cents. Mexico, Central America, and the Caribbean Area. 1962. 35 pp. 20 cents. Near and Middle East. 1961. 36 pp. 20 cents. The Nordic Area. 1962. 35 pp. 20 cents. Selected Asian Countries and Oceania. 1961. 45 pp. 25 cents. South America. 1962. 78 pp. 30 cents. Southwest Asia. 1961. 19 pp. 15 cents. Published by the U.S. Depart- ment of Commerce. Sold by De- partment of Commerce Field Offices and by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C., 20402. Make remittance payable to the Superintendent of Docu- ments. 32 passengers, and the high-density Air- bus with accommodations for up to 114 passengers. Whitworth Gloster is also producing the Javelin, a twin-jet, all- weather military fighter. British Aircraft Corporation The British Aircraft Corporation — BAC, was formed in February 1960 and brought together the aircraft and guided weapon interests of the following holding companies Bristol Aeroplane Co., Ltd., the English Electric Co., Ltd., and Vick- ers, Ltd. The BAC is a private corpora- tion with shares held by those companies in the following percentages: Vickers, 40; English Electric, 40; and Bristol, 20. The corporation has three wholly owned subsidiaries in Bristol Aircraft, Ltd., English Electric Aviation, Ltd., and Vickers-Armstrongs (Aircraft), Ltd., and has a controlling interest in Hunting Air- craft, Ltd. Aircraft developed since consolidation and formation of the corporation will bear BAC designations, and the first of these is the BAC One-Eleven, a twin-en- gined short/medium-range jet transport with accommodations for 60 to 79 pas- sengers. The BAC One-Eleven was de- veloped as the jet successor to the highly successful Viscount. BAC is also collab- orating with Sud Aviation of France on the development of the Concorde, a Mach 2.2 supersonic jet airliner with a passen- ger capacity of approximately 118. Also being developed by BAC is the TSR.2, a supersonic attack and high/ low-level reconnaissance aircraft for the Royal Air Force. Aircraft developed by member com- panies prior to the consolidation and for- mation of the British Aircraft Corporation are as follows: Bristol Aircraft, Ltd., under contract to the Ministry of Aviation, is building the Bristol Type 188, a twin-engine, all- steel supersonic research aircraft, and the Bristol Type 221, a test aircraft for the supersonic Concorde program. English Electric Aviation, Ltd., is cur- rently engaged only in military produc- tion of the Canberra and the Lightning. The Canberra is a twin-engine, long- range night interdictor or high altitude bomber, and the Lightning is a twin-en- gine, highly supersonic interceptor. Hunting Aircraft, Ltd., is producing the Jet Provost for the R.A.F. as its stand- ard basic trainer, and the H.126, a jet- flap research aircraft. Vickers-Armstrongs (Aircraft), Ltd., is presently concerned with the manufac- ture of commercial transports with the exception of the Valiant, a four-jet medi- um bomber and flight refueling tanker aircraft. Vickers-Armstrongs (Aircraft), Ltd., manufactured the Viscount, a four- engined turbo-prop airliner with capacity for up to 70 passengers. This has been the United Kingdom's most successful airliner to date with sales of well over 400 aircraft. The Vanguard was devel- oped as an enlarged version and follow- up to the Viscount. However, the advent of jet aircraft restricted the popularity of the Vanguard and neither are currently in production. The VC-10 and Super VC-10 are the latest aircraft developed by Vickers. Both are commercial transports powered by four jets mounted on the rear fuselage and are very similar. The main differ- ence is in capacity and range. The Stand- ard VC-10 has a capacity of up to 135 economy class passengers and a range of more than 4,000 miles. The Super VC-10 will accommodate up to 163 economy class passengers and has a similar range. Westland Aircraft Westland Aircraft, Ltd., a public cor- poration, combines the helicopter manu- facturing facilities of the Bristol Aircraft Co., Fairey Helicopter, and Saunders- Roe. It is responsible for all helicopter production in the United Kingdom. Bris- tol Aeroplane Co. has retained a 10 per- cent interest in Westland. Westland has produced various types of the U.S. Si- korsky helicopter under license and has also entered into a licensing agreement with Boeing-Vertol for production, sales, and service of the V-107. Westland also owns Normalair, Ltd., manufacturers of aircraft pressurization equipment. Helicopters currently in production are the Whirlwind, capable of carrying 8 civil passengers or 10 fully-armed troops; the Wessex, similar to the Sikorsky S- 58 but powered by either 1 or 2 shaft turbines; the Belvedere, a twin, free- turbined transport helicopter; and the Wasp/Scout, a 5/6-seat general purpose helicopter. The Fairey Aviation Division of West- land is also manufacturing the Gannet, a fixed wing early warning aircraft for the Royal Navy. rine, and industrial use. The only piston engines manufactured by Rolls Royce are the Continental line of aircraft piston en- gines under license from Continental Motors Corp. of the United States. Rolls Royce has wholly owned subsidi- aries in Canada, Australia, Brazil, Spain, France, and the United States. In part- nership with Boulton Paul Aircraft, Ltd., the company owns 50 percent of Dowtey Rotol, Ltd., (propellers and hydraulics), and in partnership with D. Napier & Son owns 50 percent of Napier Aero Engines, Ltd. It also owns 50 percent of Renfrew Foundries, Ltd. Bristol Siddeley Engines Ltd., is a pri- vate operating company which combines the engine manufacturing facilities of Armstrong Siddeley Motors, Bristol Air- craft, DeHavilland Aircraft, and Black- burn Aircraft. Bristol Siddeley Engines, Ltd., is owned equally by the Bristol Aeroplane Co. and the Hawker Siddeley Group. In partnership with the U.S. Aerojet General Corp., Bristol Siddeley owns 50 percent of Bristol Aerojet, Ltd., designers and producers of solid propel- lant motors, pressure vessels, and mis- sile components. Bristol Siddeley is also under license to the (U.S.) General Elec- tric Company to manufacture the GE T58 and GE T64 aircraft engines. Other Firms Rolls Royce and Bristol Siddeley Rolls Royce, Ltd., is the largest manu- facturer of aircraft turbine engines and rocket motors in the United Kingdom. More than 40,000 persons are now em- ployed by Rolls Royce, 30,000 of whom are engaged in aircraft engine research, design, and production. The company also manufactures Rolls and Bentley automobile diesel engines for rail, ma- Other companies also produce air- craft and aircraft engines. Handley Page, Ltd., is Britain's oldest independent aircraft manufacturing com- pany. Current production consists of the twin turboprop Dart Herald airliner, the Victor medium bomber for the R.A.F., and the H.P. 115, a research plane de- signed to test aerodynamic features of supersonic aircraft at subsonic speeds. Handley Page has remained and hopes to continue to remain independent. How- ever, due to U.K. policy, Government aeronautical orders are being concen- trated within the five major groups, and Handley Page is far from operating at capacity. Suggestions by the U.K. Min- ister of Aviation that Handley Page merge with one or the other of the airframe groups have thus far been rejected by the shareholders on advice of the com- pany. Short Brothers and Harland, Ltd., is an aircraft and missile manufacturing company based in Northern Ireland. It is a private operating company with ownership as follows, in percent: Minis- try of Aviation, 69.5; Harland and Wolff, Ltd. (shipbuilders), 15.25; and Bristol Aeroplane Co., 15.25. Short Brothers is the only U.K. aircraft manufacturing es- tablishment in which the Government owns a controlling interest. Short Broth- ers has developed and demonstrated a vertical take-off and landing fighter air- craft known as the SC-1. Current pro- duction consists of the Belfast, a large cargo turboprop aircraft for the R.A.F., and the Skyvan, a twin-turboprop light transport. Short Brothers and Harland employs 7,000 persons and is very im- portant to the economic structure of Northern Ireland. Short Brothers has a project design for a small twinjet, des- ignated PD-65, seating up to 30 passen- gers in a high-density version, which it believes could be used as a DC-3 re- placement. The company has also un- veiled designs for a jet version of the Belfast strategic freighter. Participation in the development and construction of the new Fokker (Netherlands) F-28 twin- jet commercial transport has also been announced. The firm is also negotiating with U.S. firms to manufacture their products in Northern Ireland under li- cense. Beagle Aircraft Ltd., is a subsidiary of British Executive and General Avia- tion, Ltd., a company formed by the Pressed Steel Co., Ltd., after its acqui- sitions of Auster Aircraft, Ltd., and the aviation business of F. G. Miles, Ltd. Beagle Aircraft, Ltd., manufactures a line of light and medium weight, piston- engine, civil and military aircraft. It is also developing a single-seat, ultra-light autogyro known as the Beagle-Wallis. Scottish Aviation, Ltd., was formed in 1935 to provide opportunities for employ- ment in the various branches of aviation in Scotland. In doing so, the company has developed Prestwick International Airport and on it has established an air- craft design and manufacturing industry. Scottish Aviation manufactures the Twin Pioneer, a 16-passenger twin-engined STOL (short take-off and landing) trans- port. A subsidiary company, Scottish Air Engine Services, Ltd., also based at Prestwick, undertakes repair and over- haul of Pratt & Whitney (U.S.) piston engines. The following manufacturers also have airframe capacity, but present pro- duction is of small significance: Aviation Traders (Engineering), Ltd. Fairtravel, Ltd. Lancashire Aircraft Co., Ltd. Marshalls' Flying School, Ltd. F. G. Miles Engineering, Ltd. Jackaroo Aircraft, Ltd. Phoenix Aircraft, Ltd. Rollason Aircraft and Engines, Ltd. Rotorcraft, Ltd. Sailplane manufacturing in the United Kingdom is concentrated within three companies: Elliotts of Newbury, Ltd., Peak Sailplanes, Ltd., and Slingsby Sail- planes, Ltd. 6 Air cushion vehicles are currently be- ing developed in the United Kingdom. Vickers-Armstrongs (Engineers), Ltd., and the Saunders-Roe Division of West- land Aircraft, Ltd., have developed and are marketing passenger vehicles of this type. Other companies also engaged in developing air cushion vehicles are: Air Cushion Development, Ltd. British Aircraft Corporation, Ltd. Colin Campbell Cushioncraft, Ltd. Denny Hovercraft, Ltd. Hawker Siddeley Group Imperial Chemical Industries, Ltd. Donald R. Robertson J. Taylor-Medhurst Trade Association The Society of British Aerospace Com- panies — SBAC, formerly the Society of British Aircraft Constructors, functions as the spokesman for the aeronautical manufacturing industry in the public re- lations field on such subjects as produc- tion and trade figures and Government representation. The SBAC includes 29 ordinary members who are airframe or engine manufacturers (each component company of the 5 major groups has re- tained ordinary membership), 407 mem- bers who are manufacturers of aeronau- tical parts, accessories, and equipment as well as 98 members who are sup- pliers of aviation materials, commodities, or processes. Government Support Subsidy Form and Repayment The U.K. Government supports the British aerospace manufacturing indus- try through direct contributions for cer- tain aerospace projects, investment and risk sharing in the development and ini- tial production of most aircraft projects, and a capital equipment subsidy that al- lows accelerated and extra (30 percent) depreciation of all capital assets. The contributions from the U.K. Gov- ernment are made outright and usually offset the development, tooling, and oth- er initial costs of launching a new proj- ect. The contributions also offset the production costs of new commercial air- craft and expenses involved in introduc- ing the aircraft into service. Government participation up to 50 per- cent of development and production costs is even more widely used than direct contributions. The reason for this is that the U.K. Government can realize a re- turn in the form of royalty payments and a profit if the project is successful. Prior to 1960, the U.K. Government normally exacted a flat 7.5-percent roy- alty on sales of Government-supported aircraft to foreign purchasers. During the 8 years ending March 1959, the U.K. Government recouped about $67,200,000 through royalties on aircraft and engines sold abroad. Under the new scheme, whereby the Government is now partici- pating as a partner with the industry in civil aircraft projects, the arrangements are considerably different. The Govern- ment no longer tries to recoup its in- vestment from exports alone but from each unit sold, whether domestically or abroad. The new Government plan for support to the aircraft industry provides for Gov- ernment recovery of its investment in particular aircraft projects out of the manufacturer's profits on the project. The profits are split three to one in favor of the industry until the industry invest- ment is recovered. Thereafter, the share proportions are reversed, until the Gov- ernment investment is completely re- couped. At this point, the industry and the Government share equally until the Government has earned a 25-percent surplus on its investment. Thereafter, share proportions revert to three to one in favor of the industry. If a Government-supported project is abandoned by the manufacturer, the Gov- ernment's contribution ceases immedi- ately. On the other hand, if the project is abandoned as a result of changes in the Government policy, the Government is responsible for the total expenditure to date up to the maximum provided for in the contract. The only reported Government-owned facilities in the aerospace industry are those of Short Brothers and Harland, lo- cated in Northern Ireland, of which the U.K. Ministry of Aviation owns 69.5 per- cent. Volume of Contracts From FY 1959 to FY 1963, approxi- mately $112 million were invested by the Government in transport aircraft but only $47.6 million recovered through pro- fit earnings. The U.K. fiscal year runs from April 1 to March 31. U.K. Treasury Civil Estimates show that FY 1961 Government expenditures on the development of civil aircraft were $19.3 million. This increased to $24.6 million in FY 1962 and to $34.3 million in FY 1963. According to figures submitted to the Parliamentary Estimates Committee, the Government will spend $49.8 million in FY 1964 and $66.0 million in FY 1965, including contributions to the Concorde program. Thereafter, the Government investment will increase rapidly as the Concorde program goes into high gear. The projected U.K. Government invest- ment in the Concorde program is $238 million. The U.K. Government has contributed 50 percent to the launching costs (de- sign, development, jigs, tooling, learn- ing) for the Super VC-10, the BAC 111, and the Spey 25 engine. Its contribution to the Standard VC-10, the Trident I, and the Spey I engine was 25 percent. Tax Benefits The U.K. system provides for both ac- celerated depreciation of capital assets and for extra depreciation, i.e., in excess of 100 percent over the period of useful life. The system applies to industry gen- erally, but is especially important in re- ducing the burden of taxation falling on companies which have a high rate of in- vestment, such as the aircraft industry. The capital allowances are of three types: 1. Annual allowances, which in principle cover the actual deprecia- tion in value of capital assets over a period of years, estimated accord- ing to their useful working life. 2. Initial allowances, which in- crease allowable amounts in the first year against reductions in later years, thus accelerating the rate of depreciation. 3. Investment allowances, which are given in the first year for new capital assets; they are additional to and not taken into account in deter- mining the other allowances. The initial and annual allowances to- gether give full relief for actual depreci- ation in the value of capital assets over their working life. The initial allowance 8 for industrial buildings is 5 percent and for plant and machinery, 10 percent. The investment allowances give full relief over and above the full depreciation. In- vestment allowances for new plant and machinery and for scientific research amount to 30 percent and for new indus- trial buildings, 15 percent. Marginal rate of company taxation in the U.K. is 53.75 percent (an essentially flat 38.75 percent income tax plus flat 15 percent profit tax on net earnings). In the United States, the rate is 52 percent; in Canada, 52; France, 50; and Western Germany, 57. However, in the United Kingdom, dividend recipients are given credit for the payment by the corporation of 38.75 percent income tax; no income tax is charged the recipient. This differs from the tax system in the United States and other countries where dividend re- cipients are charged a tax on that in- come. The range of depreciable assets is generally wider in the other countries than in the United Kingdom. On the other hand, Western Germany, the United States, and France allow more flexible methods of stock valuation than the United Kingdom. All countries except the United Kingdom and Canada treat capital gains as taxable income. Aircraft in Use Some 2,000 aircraft registered in the U.K. civil air fleet; more than 25 percent of them are U.S. manufactured. They include over 30 U.S. made, rotary-wing aircraft. The most popular U.S. makes are Piper, Douglas, Cessna, and Beech. The scheduled airlines are operating more than 350 aircraft. Commercial Airlines Service The United Kingdom has two national flag carriers, the British Overseas Air- ways Corporation — BOAC and the British European Airways Corporation — BEAC, and 14 independent airlines as follows: Autair International Airways, Ltd. B.K.S. Air Transport, Ltd. British Eagle International Airlines, Ltd. British United Airways, Ltd. British Westpoint Airlines, Ltd. Cambrian Airways, Ltd. Channel Airways, Ltd. Dan-Air Services, Ltd. Derby Aviation, Ltd. Mayflower Air Services, Ltd. Mercury Airlines, Ltd. Morton Air Services, Ltd. Scillonian Air Services, Ltd. Tradair, Ltd. (Sub-Channel Airways, Ltd.) Of these, British United Airways — BUA is the largest. During the fiscal year 1962-63, United Kingdom airlines offered 1,241 million capacity ton miles on scheduled services, an increase of 10.4 percent over that in the previous year. Total traffic carried rose by 9.4 percent to 619 million ton miles. Nearly 8 million passengers were carried, 13.4 percent more than in the previous financial year, while these pas- sengers traveled 4,934 million passenger miles or 8.1 percent more. The overall load factor fell from 50.3 percent to 49.9 percent. The BOAC operates scheduled services to both the Middle and Far East, Austra- lia, Africa, North and South America, and the Caribbean. This network of serv- ices is supplemented by the activities of subsidiary and associated enterprises overseas in which BOAC participates fi- nancially or with which it has technical or management agreements. In financial year 1962/63, BOAC carried 906,849 passengers, an increase of 6.1 percent over the previous financial year, and these passengers flew 2.794 million pas- senger miles, an increase of 5.2 percent. BOAC's present fleet consists of 20 Boeing 707's, 19 Comets, 14 Britannias, and 2 DC-7Fs. To date, BOAC has also taken delivery and is operating eight standard VC-10's and one Super VC-10. The BEAC operates scheduled domes- tic services in the United Kingdom and international services to Europe, the Near East, and North Africa. BEAC's network is also supplemented by the activities of subsidiary and associated enterprises overseas. In financial year 1962/63, a total of 2,529,491 passengers traveled on international services and 2,385,566 traveled on domestic services. These represented increases of 10.9 percent and 13.0 percent, respectively, over the previous financial year. BEAC's present fleet consists of 13 Comets, 20 Van- guards, 39 Viscounts, 3 Heralds, 2 Herons, 3 Argosy 650 freighters, and 2 Sikorsky S 61-N helicopters. To date, BEAC has taken delivery of and is op- erating 9 Tridents. The BUA, the largest independent air- line in the United Kingdom, flew 8,470,- 000 passenger miles in financial year 1962-63, an increase of 8.0 percent over the previous financial year. BUA has three operating arms, i.e., British United Air Ferries, Ltd., British United Airways, Ltd., and British United (C.I.) Airways. Its present fleet consists of 8 Britannias, 10 Viscounts, 3 DC-6A's r 6 Heralds, 2 Herons, 14 DC-3's, 5 ATL-98 Carvairs, 25 Bristol freighters, and some small types of aircraft. The remaining independent scheduled airlines operate the following aircraft: Aero Commander 500A 2 Avro 748 5 Avro Anson 2 Avro York 1 Bristol 170 4 Bristol Britannia 8 Bristol Wayfarer 1 Douglas DC-3 33 Douglas DC-4 7 Douglas DC-6 1 D.H. Ambassador 10 D.H. Dove 10 D.H. Elizabethan 5 D.H. Heron 6 D.H. Rapide 2 Vickers Viking 14 Vickers Viscount 17 Total 128 Virtually every major international air- line provides service to the United King- dom through London. Among these are four Soviet bloc airlines: Aeroflot (U.S.S.R), C.S.A. (Czechoslovakia), Ma- lev (Hungary), and LOT (Poland). The U.S. scheduled airlines providing service to the United Kingdom are Pan Ameri- can World Airways, Inc., Trans World Airlines, Inc., and Seaboard World Air- lines, Inc. Disposal and Reequipment Programs BOAC has taken delivery of 8 VC-10's out of a total order of 12. Also on order are 17 Super VC-10's (reduced from 30), 8 British-French Concordes, and 6 U.S. Super Sonic Transports (SST's). 10 BEAC has taken delivery of 9 Tridents out of a total order of 24, with an option for 10 more, and is negotiating for an additional 10 long-range IE revisions. It also has 5 Argosy-220 freighters on or- der. BUA has on order 2 VC-10's and 10 BAC- Ill's, with an option for 5 more BAC-111's. General Aviation Over 1,400 aircraft are registered in the United Kingdom for general aviation activities as follows: business and pri- vate, 601; clubs and groups, 393; train- ing schools, 61; other operations, 238; and miscellaneous, 120. The official U.K. Government attitude toward general aviation is one of encour- agement. Financial support is rendered through (1) exemption from landing charges on an unlimited basis at 74 Gov- ernment airports of aircraft up to 4,499 pounds and operated by flying clubs; (2) concessional rates for housing and parking at the Government airports for aircraft up to 4,499 pounds; and (3) lib- eral tax writeoffs on corporate and ex- ecutive aircraft plus rebates to flying clubs of the tax paid on aviation fuel. Business and private flying, the largest group of general aviation, has grown considerably in the past few years. More and more commercial and industrial companies are turning from travel by commercial rail and air to private and executive aircraft. There are about 140 flying clubs, air centers, and groups op- erating 393 aircraft. There are 238 air- craft used for air survey, photography, agricultural, and other specialized work such as demonstration, test, and experi- ment. On December 31, 1964, there were 7,815 licensed private pilots and 3,217 holders of student pilots permits in the United Kingdom. Government and club committees con- sider that the following factors most in- hibit the growth of general aviation in the United Kingdom: (1) the high inci- dence of instrument flying weather, which limits the annual utilization of privately owned aircraft unless equipped with sophisticated communications/ na- vigation equipment and piloted by an op- erator who is instrument rated; (2) the Government requirement that all flight operations on airways and in terminal control areas be conducted under Instru- ment Flight Rules; and (3) the lack of terminal navigational aids and approach facilities at many airports used by pri- vate aircraft and flying clubs, thus re- stricting aircraft utilization to day flying. Market Potential The British aircraft manufacturing in- dustry is very extensive and is second in the world only to the United States. The U.K. Government has traditionally em- phasized a Buy British policy, especially in the purchase of commercial transports. For example, BOAC purchased Super VC-10's even after expressing a pref- erence for U.S. manufactured long-range jets. It has been the policy in the U.K. that non-British aircraft be purchased only when comparable British aircraft are not available. Consequently, the fu- ture market for U.S. commercial trans- ports continues to be highly competitive. The six U.S. SST's ordered by BOAC appear to be a hedge against possible setbacks in the Concorde program. 11 The potential market for light aircraft is somewhat better than for commercial transports. Business and private flying in the United Kingdom is increasing rap- idly and more Government support is constantly being sought by the U.K. manufacturers. Since the lifting of im- port licensing restriction in 1959 on air- craft of 4,500 pounds or less, U.S. man- ufacturers of light aircraft designed for business and private use have steadily increased their sales to the United King- dom. The increase in business and private flying has been recognized in the United Kingdom and has prompted the forma- tion of Beagle Aircraft, Ltd. Beagle is now producing a variety of light business and utility aircraft and is providing strong competition for U.S. manufactur- ers. Both light and heavy helicopters are used extensively in the U.K., and there has been a good market for U.S. makes. Since the consolidation of Britain's heli- copter manufacturing interests into one large and powerful group (Westland), however, U.S. helicopters will now face stiff competition from national produc- tion. The large number of piston-engine air- craft displaced by the major airlines' acquisition of jets will meet and most likely exceed the domestic demand. Therefore, the market for U.S. surplus piston-engine transports is limited. Aircraft and parts are dutiable at 17.5 percent ad valorem on importation into the United Kingdom from the United States and all other non-Commonwealth countries. There are no sales taxes levied on aircraft. Aircraft weighing more than 4,500 pounds are required to be covered by import licenses on importation into the U.K. from the dollar area. There is no import licensing requirement for air- craft weighing 4,500 pounds or less. Li- censes are applied for and granted by the British Board of Trade on the merits of individual applications filed by the British importer. 12 United Kingdom Civil Air Fleet United Kingdom Civil Air Fleet, 2023 Commercial transports, total, 935 Scheduled airlines, 357 Autair International Airways, Ltd., 8 D.H. Ambassador, 3 Vickers Viking, 5 B.K.S. Air Transport, Ltd., 14 Avro, 748, 5 Bristol Wayfarer, 1 D.H. Elizabethan, 5 Douglas DC-3, 3 British Eagle International Airlines, Ltd., 16 Bristol Britannia, 8 Douglas DC-4, 3 Douglas DC-6C, 1 Vickers Viscount, 4 British European Airways Corp., 91 Armstrong Whitworth Argosy, 3 D.H. Comet, 13 D.H. Heron, 2 D.H. 121 Trident, 9 Handley Page Dart Herald, 3 Sikorsky S 61-N, 2 Vickers Vanguard, 20 Vickers Viscount, 39 British Overseas Airways Corp., 64 Boeing 707, 20 Bristol Britannia, 14 Douglas DC-7F, 2 D.H. Comet, 19 Vickers VC-10, 8 Vickers Super VC-10, 1 British United Airways, Ltd., 74 ATL-98 Carvair, 5 Bristol 170, 25 Bristol Britannia, 8 D.H. Heron, 2 Douglas DC-3, 14 Douglas DC-6A, 3 Handley Page Dart Herald, 6 Vickers Viscount, 10 Vickers VC-10, 1 British Westpoint Airlines, Ltd., 3 Douglas DC-3, 3 Cambrian Airways, Ltd., 10 Douglas DC-3, 5 Vickers Viscount, 5 Channel Airways, Ltd., 26 Bristol 170, 2 D.H. Dove, 2 Douglas DC-3, 7 Douglas DC-4, 1 Vickers Viking, 7 Vickers Viscount, 7 Dan-Air Services, Ltd. Avro York, 1 Bristol 170, 2 D.H. Ambassador, D.H. Dove, 1 D.H. Heron, 1 Douglas DC-3, 3 15 Derby Aviation, Ltd., 14 Avro Anson, 2 D.H. Dove, 2 Douglas DC-3, 7 Douglas DC-4, 3 Mayflower Air Services, Ltd., 2 D.H. 89A Rapide, 2 Mercury Airlines, Ltd., 3 D.H. Heron, 2 Douglas DC-3, 1 Morton Air Services, Ltd., 12 D.H. Dove, 5 D.H. Heron, 3 Douglas DC-3, 4 Scillonian Air Services, Ltd., 2 Aero Commander 500A, 2 Tradair, Ltd. (Sub. -Channel Airways, Ltd.), 3 Vickers Viking, 2 Vickers Viscount, 1 Nonscheduled, 578 Aermacchi Lockheed, 1 Aero Commander, 4 Agusta-Bell 47, 2 Airspeed Consul, 1 Armstrong Whitworth Argosy, 1 Auster, 67 Avro 748, 7 Avro York, 2 Beagle A.61, 18 Beagle A.109, 10 Beechcraft 23, 2 Beechcraft 95, 2 Bell 47, 5 Bolkow, 6 Brantly B.2, 10 Bristol 170, 17 Bristol 171, 2 Bristol Britannia, 8 Cessna 150, 15 Cessna 172, 16 Cessna 175, 9 Cessna 182, 2 Cessna 310, 10 Cessna 320, 1 Champion 7FC, 5 DeHavilland Beaver, 1 DeHavilland Chipmunk, 18 DeHavilland Dove, 22 DeHavilland Dragon, 2 DeHavilland Heron, 8 DeHavilland Moth, 32 DeHavilland Rapide, 14 Douglas DC-3 (C-47), 30 Douglas DC-4 (C-54), 13 Douglas DC-6, 2 Douglas DC-7, 2 Edgar Percival, 1 Fairtravel Linnet, 1 Forney F-1A, 11 G«rdan GY-80, 1 Handley Page Dart Herald, 8 Handley Page Hermes, 1 13 Hiller 360, 21 Hiller UH-12, 1 Hughes, 269 A, 2 Jodel D.140 B, 1 Lancashire Prospector, 3 Lockheed Constellation, 8 Commercial transports, continued Nonscheduled, continued Miles, Gemini, 4 Miles Hawk, 2 Miles Messenger, 1 Morane Saulnier, 1 Percival, 9 Piaggio P. 166, 2 Piper PA-18, 2 Piper PA-22, 43 Piper PA-23, 14 Piper PA-24, 5 Piper PA-28, 8 Piper PA-30, 5 Scottish Aviation Twin Pioneer, 5 Short Belfast, 1 Short Skyvan, 2 Taylorcraft Plus D, 1 Thruxton Jackaroo, 5 Tipsy B Series 1, 1 Vickers VC-10, 1 Vickers Viking, 9 Vickers Viscount, 14 Westland S. 51, 6 Westland S. 55, 11 General aviation (includes U.K. Govern- ment, flying clubs, and schools, busi- ness, and private use), 1,088 Aero Commander, 2 Aeronca, 7 Airspeed, 4 Arrow, 2 Auster, 172 Avro, 5 Beagle, 24 Beech, 20 Bellanca, 1 Benez-Mras, 1 Bensen, 6 Blackburn, 1 Boeing, 1 Brantly, 3 Bucker, 1 Cessna, 50 Champion, 1 Chilton, 3 Chrislea, 2 Com per Swift, 3 Cosmic Wind, 1 Currie Wot, 3 Dart Kitten, 2 DeHavilland Beaver, 1 DeHavilland Chipmunk, 40 DeHavilland Comet, 1 DeHavilland Dove, 40 DeHavilland Dragonfly, 1 DeHavilland Heron, 12 DeHavilland Mosquito, 3 DeHavilland Moth, 144 DeHavilland Rapide, 17 Desford Trainer, 1 Douglas DC-3 (C-47), 4 Druine, 32 Ercoupe, 1 Fairschild Argus, 5 Fairey, 1 Falco, 2 Forney, 2 G.A.L. Cygnet, 1 Globe, 1 Gloster, 2 Grumman, 1 Halcyon, 1 Hawker, 1 Hawker Siddeley D.H. 125, 4 Heath Parasol, 1 Helio, 3 Hiller, 1 Hunting, 3 Jodel, 17 Kronfeld Drone, 1 Lancashire, 2 Linnet, 2 Luton, 4 Miles, 106 Mooney, 6 Morane Saulnier, 10 Moravan, 1 Orlican, 11 Percival, 56 Piaggio, 3 Piel, 8 Piper, 154 Procaer, 1 Redwing, 1 Rollason, 2 Saab, 1 Saro Skeeter, 1 Scintex, 2 Servo-Tec, 1 Slingsby, 1 Stampe and Vertongen, 2 Stinson Reliant, 1 Swallow, 5 Taylor, 12 Temco, 1 Thruxton Jackaroo, 10 Tipsy, 16 V.-S. Spitfire, 3 Vickers, 3 Wallis, 1 Watkinson Ding Bat, 1 Wicko, 1 SOURCE: U.K. Air Registration Board Chancery House, Chancery Lane, London, W.C. 2 14 cjs r>. oo CO . O O O^nQnO CO O CNCNO w ■<* ^ . • • • ...... .. t NO NO a> (NO — o '. O >— OOIOOnnO hv CN CN O On o 3 oo o o CN . O I s *. ONOCN O COCO Q. •"" •— NO no TT -«* . ID lO — On — d) 0) c > 00 CO"" CN •— ■— C 3 — > c >» Xm L. J3 • Tt NO CO . . 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" ° 3 -n n C ,4* — — 3 ._ «D-C -6 — « •- c w o ° c "- o^-oc : _ o'^i:ii : " . ^ ~ iT7 c**- c c ! o Q. i_ U w 0> Q • o o *■ *■ c jc J: •- C W O) o 01 o -n — °- o>- § * £ * •- 8. • 1 2-o8si ■5 1 °-I ? 5.Q-5 « N>£ W 'O .. t>N> C CO 4) ,3 CN OT c , Q-> „ ' OO >* -08880 To » - - 5 a c z -r,-oto Iccji.5 :a>a> o-o ^c©° ooE*" i:EOc 8 4h-s::is":-|ifc' O -» i-r-O ° 0)0 •__ ^ w J 3 o)-o aaa o>« .-jj>.3d |^^_0 „ fc > CT3 O P £ £ O O V) C 3 O*) O) c c 4- +- 5^ O O x « > ©O -O « • £ 0)00 c -3 0) w c 0) © | O « z O - -0^ C O CO V ^ — . w c o «E >. w * « if E " O c •- « ih u J>J;ZZow > a)Oa>c U u u i .i: c c u (J a o. 0) SO o a> c 3 — > ■ u O 3 C O -1 3 > 565, 976 161,947 404, 029 2,389 5,884 391,768 .a E 3 z 1,295 840 834 CO SO Os 3 O > 1,084,215 244, 100 840, 115 3,635 8,994 827, 686 L. 0) _a E 3 z 2,251 1,292 1,334 CN SO Os 0) 3 O > 1,407,182 313,842 1,093,340 4,510 10,549 1,078,280 -Q E 3 z 2,035 1,819 1,370 SO O 4) D "5 > 1,237,759 338,678 899,081 4,399 11,684 882, 998 0) _Q E 3 z 2,460 1,575 1,574 c c c I 1/ a C i > ) 1 Aircraft, parts and accessories, total. , . Commercial and civilian aircraft, total Parts and accessories, total Aircraft engines, reciprocating, new, aircooled, under 400 horse- Aircraft engines, reciprocating, used and rebuilt Aircraft components, parts, and accessories, not elsewhere classified 1 o a o | O -o .. 3 o> "o 2 C 3 — . SO o 16 U.S. DEPARTMENT OF COMMERCE-FIELD OFFICES ALBUQUERQUE, N. MEX., 87101, U.S. Courthouse. Phone: 247-0311. ANCHORAGE, ALASKA, 99501, Rm. 306, Loussac-Sogn Building. Phone: BR 2- 9611. ATLANTA, GA., 30303, 75 Forsyth St., N.W. Phone: 526-6000. BALTIMORE, MD., 21202, Rm. 305, U.S. Customhouse, Gay and Lombard Sts., Phone: PLaza 2-8460 Ext. 2784. BIRMINGHAM, ALA., 35203, Title Bldg., 2030 Third Ave., North. Phone: 325- 3131. BOSTON, MASS., 02110, Room 230, 80 Federal St. Phone: CApitol 3-2312. BUFFALO, N.Y., 14203, 504 Federal Bldg., 117 Ellicott St. Phone: TL 3-4216. CHARLESTON, S. C, 29401, No. 4 North Atlantic Wharf. Phone: 722-6551. CHARLESTON, W. VA., 25301, 3002 New Federal Office Bldg., 500 Quarrier St. Phone: 343-6196. CHEYENNE, WYO., 82001, 207 Majestic Bldg., 16th & Capitol Ave. Phone: 634- 2731 CHICAGO, ILL, 60604, 1486 New Federal Building, 219 South Dearborn St. Phone: 828-4400. CINCINNATI, OHIO, 45202, 8028 Federal Office Bldg., 550 Main St. Phone: 381- 2200. CLEVELAND, OHIO, 44101, 4th Floor, Federal Reserve Bank Bldg., East 6th St. & Superior Ave. Phone: 241-7900. DALLAS, TEX., 75202, Room 1200, 1114 Commerce St. Phone: Riverside 9-3287. DENVER, COLO., 80202, 142 New Custom House, 19th & Stout St. Phone: 297-3246. DES MOINES, IA., 50309, 1216 Paramount Bldg., 509 Grand Avenue, Phone: 284- 4222. DETROIT, MICH., 48226, 445 Federal Bldg. Phone: 226-6088. GREENSBORO, N. C, 27402, Room 407, U.S. Post Office Bldg. Phone: 273-8234. HARTFORD, CONN., 06103, 18 Asylum St. Phone: 244-3530. HONOLULU, HAWAII, 96813, 202 Inter- national Savings Bldg., 1022 Bethel St. Phone: 588977. HOUSTON, TEX., 77002, 5102 Federal Bldg., 515 Rusk Ave. Phone: CA 8-061 1. JACKSONVILLE, FLA., 32202, 512 Green- leaf Bldg., 204 Laura St. Phone: ELgin 4-71 1 1 . KANSAS CITY, MO., 64106, Room 2011, 91 1 Walnut St. Phone: BAItimore 1-7000. LOS ANGELES, CALIF., 90015, Room 450, Western Pacific Bldg., 1031 S. Broad- way. Phone: 688-2833. MEMPHIS, TENN., 38103, 345 Federal Office Bldg., 167 N. Main St. Phone: 534-3214. MIAMI, FLA., 33130, Rm. 1628, Federal Office Bldg., 51 S.W. 1st Ave. Phone: 350-5267. MILWAUKEE, WIS., 53203, Straus Bldg., 238 W. Wisconsin Ave. Phone: BR 2- 8600. MINNEAPOLIS, MINN., 55401, Room 304, Federal Bldg., 110 S. Fourth St. Phone: 334-2133. NEW ORLEANS, LA., 70130, 909 Federal Office Bldg., (South) 610 South St. Phone: 527-6546. NEW YORK, N.Y., 10001, 61st Fl., Empire State Bldg., 350 Fifth Ave. Phone: LOng- acre 3-3377. PHILADELPHIA, PA., 19107, Jefferson Bldg., 1015 Chestnut St. Phone: 597- 2850. PHOENIX, ARIZ., 85025, New Federal Bldg., 230 N. First Ave. Phone: 261- 3285. PITTSBURGH, PA., 15219, Room 2201, Federal Bldg., 1000 Liberty Ave. Phone: 644-2850. PORTLAND, OREG., 97204, 217 Old U.S. Courthouse, 520 S. W. Morrison St. Phone:226-3361. RENO, NEV., 89502, 300 Booth St., Phone: 784-5203. RICHMOND, VA., 23240, 2105 Federal Bldg., 400 North 8th St. Phone: 649- 3611. ST. LOUIS, MO., 63103, 2511 Federal Bldg., 1520 Market St. Phone: MAin 2- 4243. SALT LAKE CITY, UTAH, 84111, 3235 Federal Bldg., 125 So. State St. Phone: 524-5116. SAN FRANCISCO, CALIF., 94102, Room 9453, Federal Building, 450 Golden Gate Ave. Phone: 556-5868. SANTURCE, PUERTO RICO, 00907, Room 628, 605 Condado Ave. Phone: 723- 4640. SAVANNAH, GA., 31402, 235 U.S. Court- house and Post Office Bldg., 125-29 Bull St. Phone 232-4321. SEATTLE, WASH., 98104, 809 Federal Of- fice Bldg., 909 First Ave. Phone: MUtual 2-3300. PENN STATE UNIVERSITY LIBRARIES I AooooTiaaaoi? / ♦<°>+ \