§ 28. Mr. Lubbockasked the Minister of Aviation why, in view of the fact that the British Overseas Airways Corporation now announce that they will have ten aircraft too many following re-equipment with the Boeing 707 and VC10, the orders still outstanding last year for an additional three 707's at a cost of over £6 million were not cancelled.
§ Mr. AmeryB.O.A.C. placed this order for three further Boeing 707 aircraft in early 1961. Its purpose was to meet an anticipated shortage of large jet capacity and to improve its competitive position between then at the time of the order and the coming into service of the VC10. The order is thus unaffected by B.O.A.C.'s reappraisal of its traffic forecasts for the later years.
§ Mr. LubbockThe anticipated shortage of jet capacity did not materialise. Did not many people point out early last year, including the magazine Flight International, that the over-capacity which B.O.A.C. was already experiencing would be intensified? Therefore, was there not a good argument for the cancellation of the outstanding orders for these aircraft?
§ Mr. AmeryNo, I do not think so. I think that B.O.A.C. takes the view—and I see no reason to disagree with the Corporation—that it needs these aircraft in the period before the VC10 comes into service.
§ Mr. LubbockWhy were the Comets taken out of service if B.O.A.C. did not have enough jet capacity?
§ 29 and 30. Mr. Croninasked the Minister of Aviation (1) if he will make 938 a statement on the revised operating policy of British Overseas Airways Corporation;
§ (2) when he now proposes to make a statement on the inquiry which is being made on his behalf into the financial affairs of British Overseas Airways Corporation.
§ Mr. J. AmeryI would ask the hon. Gentleman to await the debate later this afternoon, when I shall try to deal more fully with this subject.