ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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From 50 Years Ago: I A C and Subsidy.

Weekly Notes from Volume XII, No 2, January 9, 1960.

The Cost Structure Committee appointed by the Government has worked out the standard costs on the basis of which the I A C’s losses will be subsidised. Its recommendations are under consideration. Since it is natural to compare the performance of the I A C with that of the private companies before nation-alisation, the I A C may legitimately ask that it should be given the same subsidy on avia-tion petrol which used to be given to the air companies. To what extent the financial re-sults of nationalised air transport are affect-ed by this subsidy would be of some interest, though so far the Government has taken the view that this is only a question of a mere book entry and that there was no point in al-lowing a rebate on aviation fuel to the I A C. While on the subject of the performance of airline operations, would it be odious to s uggest that the quality and efficiency of the service is also important, if not as important, as the load factor or the other technical crite-ria which are so fully set out in its latest an-nual report?... Then there is the police method of dealing with the passenger bookings, penal charges for transfer of dates or flights and the wholly unjustified confiscation of the entire fare from those who do not turn up in time – this, while chance tickets are issued and no doubt availed of by others on such occasions, so that the I A C does not lose the fare which the unfortu-nate latecomer has to forego.

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