HC Deb 05 March 1979 vol 963 cc488-9W
Mr. Cryer

asked the Secretary of State for Trade what would be the increase in revenue needed from operating Concorde services to cover the amortisation of the aircraft and the purchase of spares in accordance with British Airways' normal accounting criteria.

Mr. Clinton Davis

If a surplus of £15 million for the 5-year period 1979–80 1983–84 is assumed (paragraph 10 of the report of the review group) the additional revenue required would be £65 million. If a surplus of £70 million is assumed (paragraph 12 of the report) the additional revenue required would be £10 million.

Mr. Cryer

asked the Secretary of State for Trade what has been the loss of revenue sustained by British Airways' inability to obtain sufficient revenue from the operation of Concorde to cover dividend on public dividend capital.

Mr. Clinton Davis

Taking into account the interim dividend which British Airways will now pay in 1978–79, it is estimated that the loss of dividend from the commencement of supersonic services to 31 March 1978 on that part of the airline's public dividend capital associated with the acquisition of Concorde and its spares amounts to around £20 million.

Mr. Cryer

asked the Secretary of State for Trade if he will now enter into negotiations with British Airways to phase out the operation of Concorde and ensure that neither of the two unsold Concordes are taken into the British Airways fleet and that no further expenditure is incurred in modifying the two unsold Concordes to enable such use to take place.

Mr. Clinton Davis

No.

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