§ Sir A. V. Harvey
asked the Minister of Transport and Civil Aviation what further information he has about the financial results of the British Overseas Airways Corporation for the year 1957–58.
§ Mr. Watkinson
During the Civil Aviation debate on 27th January, I warned the House that B.O.A.C. would not have a good financial year in 1957–58. The loss for the year is now estimated at about £2¾ million. The main cause of this loss is that revenue has not come up to expectations, which B.O.A.C. attribute to the late delivery of new aircraft and partly to the recession in North America. B.O.A.C.'s finances are seriously affected by the level of engineering costs which have been shown to be much higher than those of comparable foreign airlines.