Re: Subsidies ...

From:         Pete Hughes <pete@pjhughes.demon.co.uk>
Date:         21 Mar 96 02:38:04 
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In article <airliners.1996.320@ohare.Chicago.COM>, Jim Tilbey
<jim.tilbey@zetnet.co.uk> writes
> The
>BAC1-11 was about the only success story, because although built on
>the same principal, for BEA once again, it took a lot of people by
>suprise when it broke into the US market, especially since there was
>strong competition from the DC-9.

The BAC1-11 was Not built for BEA, initially.  They only bought 1-11s
with the launch of the 500-series.

The US was always seen as a prime target of the 1-11 sales team.  The
launch customer was British United, with an order for 10 with options on
a further 5 on 9 May 1961. At the same time Ozark placed a letter of
intent for 5 aircraft.  Frontier committed to 6 in June.  These US
orders came to naught because the US CAB threatened to withdraw local
service route subsidies for both operators if they proceded with the
contracts.

The firm order placed by Braniff for 6 aircraft on 23 October 1961 was
the first time that a US airline had ordered a non-US airliner off the
drawing board.

Mohawk ordered 4 aircraft on 24 July 1962.

Bonanza Airlines ordered three 1-11s in November 1962, but these were
cancelled the following February again because of the US CAB who refused
a loan guarantee for the purchase.  Strangely (!) they then agreed to
guarantee the loan for purchase of DC9s!!!

By the time the prototype 1-11 was rolled out there was an orderbook for
60 aircraft, none of them for either of the nationalised state
corporations (BEA and BOAC).  The prototype flew four months after the
DC9 was launched, the DC9 flying 18 months after the 1-11.

BEA were the launch customer for the stretched -500 series but this was
not until 27 January 1967 when an order for 18 was placed with an option
on 6 more.

Details extracted from The One-Eleven Story by Richard J Church,
published by Air-Britain ISBN 0 85130 221 1

--
Pete Hughes