HC Deb 10 May 1938 vol 335 cc1409-10
42. Mr. Perkins

asked the Under-Secretary of State for Air whether it was proposed to run an air service as from 29th April, 1938, from London to Budapest; and whether this service is in operation?

Lieut.-Colonel Muirhead

I understand that at the date of issue of the time tables for the service referred to, it was the intention of Imperial Airways to run this service as from 2nd May. The company subsequently decided that it was unable to carry out its intention without a further subsidy. In the light of the recommendations of the Cadman Committee, the grant of a subsidy for the proposed service raises a number of questions which are now under consideration. In the meantime, I understand that the service is not in operation.

Mr. Perkins

Surely the hon. and gallant Member realises that the Cadman Committee recommended that this service should be run by British Airways and not by Imperial Airways?

Lieut.-Colonel Muirhead

Yes, but the whole question of European services is being reconsidered, in the light of the Cadman Committee's Report. The service was previously run by Imperial Airways.

Mrs. Tate

When services like Olley Air Services manage to run financially sound companies, without any subsidy, how is it that these subsidised companies are so inefficient?