(c) crown copyright
Catalogue Reference:CAB/129/52
Image Reference:0026
( T H E DOCUMENT IS THE P R O P E R T Y O F HER BRITANNIC MAJESTY'S
GOVERNMENT)
CONFIDENTIAL CABiNil . OFFK
RECORD COPY C. (52) 176
COPY NO,
26TH MAY, 1952 CABINET CIVIL AIR TRANSPORT
Note by t h e S e c r e t a r y of the Cabinet
I a t t a c h the d r a f t of a s t a t e m e n t on C i v i l A i r T r a n s p o r t
to b e m a d e in both H o u s e s on T u e s d a y , 27th M a y .
The
P r i m e M i n i s t e r h a s d i r e c t e d t h a t it should be c o n s i d e r e d b y
the C a b i n e t t o - m o r r o w .
(Signed) NORMAN BROOK
C a b i n e t Office, S. W. 1 . , 26TH MAY, 1952. D R A F T S T A T E M E N T ON CIVIL AIR TRANSPORT FOR TUESDAY, 27TH MAY, 1952 My Noble F r i e n d , L o r d L e a t h e r s , h a s a l r e a d y s t a t e d i n a n o t h e r
p l a c e t h a t i t is the p o l i c y of H e r M a j e s t y ' s G o v e r n m e n t for a i r t r a n s p o r t
to c o m b i n e the a c t i v i t i e s of t h e A i r w a y s C o r p o r a t i o n s and the independent
c o m p a n i e s in the w a y which w i l l b e s t s e r v e the i n t e r e s t s of B r i t i s h
Civil A v i a t i o n and of a l l u s e r s of t h e i r s e r v i c e s .
We r e c o g n i s e that the A i r w a y s C o r p o r a t i o n s h a v e e s t a b l i s h e d
t h e m s e l v e s w e l l in the i n t e r n a t i o n a l field.
encourage this.
We s h a l l do a l l we can t o
T h e y a r e up a g a i n s t i n t e n s i v e c o m p e t i t i o n f r o m
f o r e i g n a i r l i n e s and we a r e d e t e r m i n e d t h a t the c o m p e t i t i v e s t r e n g t h
of the C o r p o r a t i o n s to o p e r a t e both f i r s t and s e c o n d or t o u r i s t c l a s s
s e r v i c e s on t h e i r p r e s e n t e s t a b l i s h e d n e t w o r k s will not be i m p a i r e d .
On the o t h e r hand, we s e e k to i m p r o v e the p o s i t i o n of the i n d e ­
p e n d e n t c o m p a n i e s , who with few e x c e p t i o n s lack long t e r m s e c u r i t y and
o p p o r t u n i t i e s of e x p a n s i o n .
T h e y cannot e s t a b l i s h t h e i r p o s i t i o n if
t h e y cannot p l a n f i r m l y a h e a d .
We t h e r e f o r e intend to give the i n d e ­
p e n d e n t c o m p a n i e s m o r e s c o p e and m o r e s e c u r i t y , while a t the s a m e
t i m e not i n c r e a s i n g t h e c o s t of c i v i l a v i a t i o n to the t a x p a y e r .
We h a v e t h e r e f o r e d e c i d e d t h a t t h e d e v e l o p m e n t of new o v e r s e a s
s c h e d u l e d s e r v i c e s s h a l l be open t o t h e C o r p o r a t i o n s and i n d e p e n d e n t
companies alike.
A p p l i c a t i o n s will be m a d e to the A i r T r a n s p o r t A d v i s o r y
C o u n c i l , who w i l l a d m i n i s t e r a p r o c e d u r e on l i c e n s i n g l i n e s .
Associate
A g r e e m e n t s for n e w r o u t e s w i l l n o r m a l l y be g r a n t e d for s e v e n - y e a r
p e r i o d s with e x t e n s i o n to 10 y e a r s in s p e c i a l c a s e s .
T h i s should give
p r i v a t e f i r m s sufficient s e c u r i t y for c a p i t a l outlay and e x p a n s i o n .
In
p a r t i c u l a r , we h a v e h o p e s of i n d e p e n d e n t c o m p a n i e s d e v e l o p i n g the a l l ­
freight m a r k e t , w h i c h is a g r o w i n g field with g r e a t p o s s i b i l i t i e s .
There
il
a r e a l s o o p p o r t u n i t i e s for s p e c i a l t y p e s of s e r v i c e s u c h a s s e a s o n a l
i n c l u s i v e t o u r s a n d s e r v i c e s a t c h e a p f a r e s not d i r e c t l y c o m p e t i t i v e
with B . O . A . C. to p l a c e s within t h e Colonial E m p i r e .
C h a r t e r o p e r a t i o n s a r e in the m a i n the d o m a i n of the
independent o p e r a t o r .
The C o r p o r a t i o n s w i l l k e e p the r i g h t to
e n g a g e in c h a r t e r w o r k in t h o s e c a s e s w h e r e t h e y h a v e s p e c i a l f a c i l i t i e s .
T h e y w i l l n o t , h o w e v e r , m a i n t a i n a i r c r a f t s p e c i f i c a l l y for c h a r t e r
work.
United Kingdom i n t e r n a l s e r v i c e s p r e s e n t a s p e c i a l p r o b l e m .
T h e i r c o s t to the t a x - p a y e r i s c o n s i d e r a b l e .
We a r e s t i l l e x a m i n i n g t h e
b e s t way of r e l i e v i n g the t a x - p a y e r of t h i s b u r d e n s o far a s p o s s i b l e ,
while at t h e s a m e t i m e m e e t i n g t h e n e e d s of, for e x a m p l e , Scotland,
the C h a n n e l I s l a n d s and the I s l e of M a n .
continue to o p e r a t e the r e x i s t i n g n e t w o r k .
In the m e a n t i m e B . E . A . w i l l
Internal s e r v i c e s additional
to t h o s e of B . E . A . w i l l be m a d e a v a i l a b l e to p r i v a t e o p e r a t o r s for l o n g ­
term periods.
T h e A i r T r a n s p o r t A d v i s o r y C o u n c i l will be r e a d y to
r e c e i v e d u r i n g t h i s s u m m e r a p p l i c a t i o n s for t h e s e and for o v e r s e a s
s e r v i c e s in t i m e for the p o l i c y to t a k e effect in 1953.
The c o m p a n i e s w i l l
continue to o p e r a t e s c h e d u l e d s e r v i c e s a s A s s o c i a t e s of t h e C o r p o r a t i o n s
but u n d e r a m o d i f i e d f o r m of A g r e e m e n t a n d without s u b s i d y .
Terms
and c o n d i t i o n s of s e r v i c e m u s t c o m p l y with a g r e e m e n t s r e a c h e d
t h r o u g h t h e m a c h i n e r y of the N a t i o n a l J o i n t Council for Civil A i r
Transport.
Under this policy, which h a s been framed after consultation
with t h e m a n y i n t e r e s t s affected, the p u b l i c a n d p r i v a t e s e c t o r s of the
i n d u s t r y c a n both m a k e t h e i r b e s t c o n t r i b u t i o n s to t h e d e v e l o p m e n t of
B r i t i s h civil a v i a t i o n .
-2­