The Archive · 1938

Britain to Expand Civil Air Service

Cadman Inquiry Report Urges Radical Reforms in Imperial Airways Directorate London, Mar. 9.

'TRONG criticism of the management of Imperial Airways and recommendations for radical changes in the direction of civil aviation in Great Britain are the features of the report of the Committee of Enquiry appointed in November last year to conduct an investigation into the state of civil aviation in the country. The report of the Committee, which was presided over by Lord Cadman, was issued last night together with the observations and decisions of the Government, Although the carriage of air passengers in safety and comfort and the conveyance of mails and freight have been achieved by Imperial Airways with considerable efficiency, the report declares, the Committee could not avoid the conclusion that the management has been defective in other respects"

"In particular, not only has it failed te ce-operate fully with the Air Munistey, but It has been intolerant to suggestion and unyielding in negotiations.

"Internally, its attitude on staff matters has left much to be desired. Tt appears to us that the Managing Director of the Company—presumably with the acquiescence of the Board—thas taken a commercial view of his responsibilities that was too narrow and has failed to give the Government departments with which he has been concerned the ce-operation we should have expected from a company heavily subsidized and having such] important international and Imperial} contracts.

"There should, in our opinion, be immediate improvement in these res peels, and this may well involve some Change in the directing personnel." organization und management of Imperial Airways.

The Government have consulted with the Company and are informed that it welcomes the suggestion that a full-time Chairman should be appointed by the Board In agreement with the Government.

The Committee thought thay it would be proper, in the case of subs sidized air transport companies, for dividends to be restricted to the limits Usually associated with public ulllity companies, and the Government press sympathy with the principle underlying this proposal and will eons sider means of giving effect to It.

'The reorganization at the Air AMinistry resulting from the Commitlee's recommendations and the Government' is on the matter elude

Text read from the printed page and cleaned; old type leaves the occasional error.

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