The terms on which the Agreement for the Indian Service was negotiated included the free transfer to Imperial Airways of two "Calcutta" Flying boats. In accordance with the arrangements described in Command Paper 3143 of July 1928, the Company paid £40,000 for the two boats, with a per contra lump sum addition of £40,000 to the current year's subsidy. Further, when it was arranged that the sea mileage on the Indian route should be extended, necessitating an addition to Imperial Airways' fleet not allowed for in the original terms, it was decided to make a capital grant of £20,000 to the Company in the form of a contribution towards the first of the new flying boats on the trans-Mediterranean section of that route.