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Air Corporations (Transfer Of Routes)

Volume 807: debated on Monday 30 November 1970

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3.

asked the Secretary of State for Trade and Industry if he will now make a further statement concerning the transfer of certain British European Airways and British Overseas Airways Corporation routes.

The Secretary of State for Trade and Industry and President of the Board of Trade
(Mr. John Davies)

I have nothing to add to what my right hon. Friend the Minister for Trade said during the Second Reading debate on the Civil Aviation (Declaratory Provisions) Bill.

That is not much of an answer. Is the right hon. Gentleman aware that the Civil Aviation (Declaratory Provisions) is regarded as being designed to circumvent the Acts of 1960 and 1967 and is looked upon as an execrable and treacherous measure by all those who work in B.O.A.C. and B.E.A.? Is he further aware that if the measure is carried out it will not only damage the morale of the British air corporations but will give succour to their foreign competitors? Will the Government drop this incredible and remarkable anti-British attitude which they so often exhibit?

I do not agree with any of the points made by the hon. Gentleman. The Bill in question is designed not to circumvent the previous provisions but to reinforce the Government's position.

Does my right hon. Friend agree that if B.O.A.C. could shake itself free of industrial troubles it would more than make up the loss of revenue which might result from the Bill? Would not the hon. Member for Ealing, North (Mr. Molloy) be better employed in promoting industrial harmony in place of strife?

It is correct to say that the proposed transfer is of a very small proportion of the routes of B.O.A.C. I quite agree with the comments in the latter part of the supplementary question.

Do I understand that the Government are still extracting information on routes and route profitability from B.O.A.C. and B.E.A. and handing it over to Caledonian so that Caledonian can pick and choose the routes it would like? Do I gather that after this disgraceful operation is complete, the right hon. Gentleman will leave it to the Air Transport Licensing Board to transfer the routes? Is not that putting the licensing procedure on the level of a farce?

Discussions are proceeding with both B.O.A.C. and Caledonian, but not quite in the framework mentioned by the right hon. Gentleman. When a decision is reached Caledonian will need to apply to the A.T.L.B. for the routes in question.