§ 64. Mr. Masonasked the Secretary of State for Trade and Industry what is his most recent estimate of the total cost of the Concorde project, specifying the most recent figures of the United Kingdom share of research, development and production costs.
§ Mr. Michael HeseltineThe latest estimate of research and development costs12W was given to the House on 4th May, 1972.The House agreed on 21st July, that up to £125 million could be advanced to finance production as an interim measure while we are assessing the full amount likely to be required.
§ 65. Mr. Masonasked the Secretary of State for Trade and Industry (1) what is the recent estimate of the number of Concorde aircraft that will have to be sold to cover the research and development costs;
(2) what is his estimate of the research and development losses involved in the Concorde aircraft by stated scale of sales.
§ Mr. Michael HeseltineIt has been recognised for some time that we could expect to recover only part of the research and development costs. The precise amount of recovery will depend upon a wide range of factors including the number of aircraft sold and their price.
66. Mr. Milianasked the Secretary of State for Trade and Industry what discussions he is currently having about supersonic flying rights for Concorde.
§ Mr. Michael HeseltineThe Department is in touch with BOAC on its route plans. Types of aircraft and speeds of flights are not usually specified in international rights for air services.
As planning for Concorde services progresses, if it appears that States' regulations affect intended paths for flight at supersonic speeds, any necessary discussions will be undertaken.
67. Mr. Milianasked the Secretary of State for Trade and Industry what is the latest position on orders for Concorde.
§ Mr. Masonasked the Secretary of State for Trade and Industry whether he still expects his estimate of Concorde sales by the end of 1972 of 30 to 40 Concorde aircraft will be realised; and if he will now, in the light of present sales and prospects, bring his estimates up to date.
§ Mr. Michael HeseltineBOAC and Air France have signed contracts for five and four Concordes respectively. The Chinese have signed a preliminary purchase agreement for two aircraft and are considering increasing it to three. Iran Air have said that they will purchase 13W three aircraft. Discussions are in progress with other potential purchasers but it is too early to forecast the number of orders that will be received.
§ Mr. Masonasked the Secretary of State for Trade and Industry if he will make a statement on the nature of the contract he has approved between the British Overseas Airways Corporation and the British Aircraft Corporation for the sale of five Concorde aircraft to the British Overseas Airways Corporation.
§ Mr. Michael HeseltineThe contract signed on 28th July for the sale of five Concorde aircraft was a matter settled between the British Overseas Airways Corporation and the British Aircraft Corporation.
§ Mr. Masonasked the Secretary of State for Trade and Industry why Concorde production expenditure in France has already reached £75 million and in the United Kingdom £30 million.
§ Mr. Michael HeseltineExpenditure on production in France is running at a comparable level to that in this country. The total commitment in the United Kingdom is £75 million which includes orders placed on French suppliers. The total commitment on the French side is of the same order.
§ Mr. Masonasked the Secretary of State for Trade and Industry what technical progress is being achieved to make Concorde production aircraft less noisy on take-off, landing and flyover; and if he will make a statement.
§ Mr. Johnasked the Secretary of State for Trade and Industry whether he will publish a report upon the quietening of the Concorde aircraft engines.
§ Mr. Michael HeseltineThe development work already in progress will ensure that the production aircraft will be substantially quieter than the prototypes.
§ Mr. Masonasked the Secretary of State for Trade and Industry when he expects to be able to inform Parliament of the permanent financing arrangements he has in mind for the financing of Concorde production aircraft.
§ Mr. Michael HeseltineEarly in the next session.
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§ Mr. Masonasked the Secretary of State for Trade and Industry if he will ascertain the reasons why Air France has not yet ordered any Concorde Aircraft; and if he will make a statement.
§ Mr. Michael HeseltineAir France signed a contract for four aircraft on 28th July, 1972.
§ Mr. Masonasked the Secretary of State for Trade and Industry if he will ascertain the reasons why Air Canada has cancelled its options of the purchases of Concorde aircraft; and if he will make a statement.
§ Mr. Michael HeseltineAir Canada has informed the manufacturers that it does not wish to renew its option agreement for four aircraft with deliveries in 1977–78. The Chairman of Air Canada explained in a statement on 5th July that at the present time Concorde was not suitable for Air Canada's type of operation but that the airline intended to watch closely all developments in supersonic technology and the evolution of the travel market.
§ Mr. Masonasked the Secretary of State for Trade and Industry if he will obtain an estimate from the manufacturers of the extent to which the ban on sonic boom over the United States of America is proving a deterrent in the sales of Concorde aircraft to American airlines; and if he will make a statement.
§ Mr. Michael HeseltineThe US Government's intention to restrict supersonic flying overland has been known for some years. But many of the US airlines have international routes which are ideally suited for Concorde operations.
§ Mr. Johnasked the Secretary of State for Trade and Industry if he will list the departmental checks upon the development costs of Concorde.
§ Mr. Michael HeseltineThe Department's procedures for monitoring the development programme and expenditure were explained to the Standing Committee of Public Accounts, and are described in the reports for session 1968–69.
§ Mr. Johnasked the Secretary of State for Trade and Industry what are his 15W latest estimates as to the number of passengers which Concorde will be able to carry in commercial flights.
§ Mr. Michael HeseltineThe manufacturers are confident that the target payload on entry into service of 20,000 lbs. between Paris and New York in summer conditions, which is equivalent to about 24,000 lbs. between London and New York, will be achieved. The actual numbers of passengers on specific routes will depend upon the individual airline's policy towards seat layout, optional equipment, and operating procedures.