§ Commander BELLAIRSasked the Chancellor of the Exchequer whether, seeing that an extensive mileage is flown in America without subsidy, and in view of the increased profits during the last financial year of Imperial Airways at the rate of £10,000 per month, any steps are to be taken towards altering the subsidy system?
§ Sir S. HOAREI have been asked to reply. My hon. and gallant Friend is apparently misinformed. The net profit disclosed by the profit and loss account of the last published balance sheet of Imperial Airways, Limited, was £11,461 for the year (after the subsidies had been credited) and not £10,000 per month. This profit shows an improvement on the results of previous years, when losses of larger amounts were recorded, but it is clear that at present the company cannot continue to operate without financial assistance. I would remind my hon. and gallant Friend that aircraft-operating companies in America receive financial assistance by means of postal contracts and considerable additional assistance in the shape of the provision of free ground organisation. The conditions prevailing in America are entirely different from those prevailing in the Eastern Hemisphere.