The commercial exploitation of air transport is passing through a period
of experiment, and suffering in the general war reaction from the
incapacity of the public to think of aviation except as a fighting
service. The machines hitherto used on the lines to and on the Continent
are principally converted war machines, and to transform military into
commercial craft and to use them as such is of small assistance to civil
aviation, which requires reliable, economic machines as one of the basic
conditions of its financial success. The cost of running an air
transport service is considerable. Depreciation is one heavy item of
expenditure. New machines must be evolved suitable to the requirements
of mail, passenger and freight transport, but, in the present state of
financial stringency, capital is not forthcoming for experiment unless
there is every promise of a safe return. Then there are the expenses
involved in general ground organization, maintenance, fuel, insurance,
etc. The question is how can we carry on until the really economic type
of commercial machine is evolved. It will never be evolved unless there
is continuous flying and a continuous demand for new and improved
machines for commercial work. To meet this in France, the Government
came forward with a liberal grant of subsidies which have now been
increased and placed on a more favourable basis, permitting of a very
considerable reduction in the fares for transport by air. The British
Government has also granted a subsidy for British firms operating on the
cross-Channel routes, which it is hoped will place them before long on a
sound, self-supporting, commercial basis. Part of this subsidy is
allocated to assist transport companies in obtaining the latest type of
commercial machines on a hire purchase system. With a few services
properly supported by the State we shall pull through the experimental
period of civil aviation.

The services to the Continent, although the distance is on the short
side for the merits of air transport to be properly demonstrated, effect
a considerable saving in time, and it is certain that the amount of
mail, especially parcels, carried on these routes will continue to
increase and lead to the eventual adoption of normal rates for air
postage. An extension of the use of aircraft as the regular means of
carrying mails will be of great assistance in the development of air
transport. Aircraft revolutionize the speed of intercommunicatio