§ 17. Mr. Ridleyasked the President of the Board of Trade what are the losses for the latest year for which he has figures incurred by British European Airways upon domestic air services.
§ Mr. William RodgersFor its last financial year, 1967-68, B.E.A. assesses the loss at £1½ million.
§ Mr. RidleyDoes not the hon. Gentleman consider that causing B.E.A. to make these losses and then making them up from taxes is just about the best way one can think of to bankrupt independent airlines which have the effrontery to compete with the State?
§ Mr. RodgersMaking them up from taxes does not arise. For many years the domestic losses have been more than offset by profits on B.E.A.'s international services.
§ Mr. MartenAs the hon. Gentleman said in answer to a previous Question that he had no doctrinaire approach to this matter, will the Government not shut their eyes to the proposition that the best way to solve the whole problem of these airlines is to denationalise the two Corporations?
§ Mr. CroninDoes my hon. Friend agree that these losses contain a substantial component consisting of losses due to services provided, for instance, to the Highlands and Islands which the independent airlines would not touch with a barge-pole because there is no profit in them?
§ Mr. RodgersThat is correct. It is necessary to notice also that most independent airlines are not making a profit on their domestic scheduled services at present.
§ Mr. OnslowWhen does the hon. Gentleman expect these services to show a profit?
Mr. KodgersAs the hon. Member knows, operations must be taken one year with another. This has been a bad year; we hope that the next year will be better.