HC Deb 03 June 1959 vol 606 cc177-8
27. Mr. Beswick

asked the Minister of Transport and Civil Aviation what he estimates will be the impact on British airline operators of the proposed European consortium of companies; what is his policy with regard to this development; and if he will make a statement.

Mr. Watkinson

From the information available it is difficult to assess the probable impact of this proposal on British airlines, or how it may develop. For the time being I think it is right to keep an open mind about our attitude.

Mr. Beswick

Does not the Minister think that he has a lesson to learn from what is happening in Europe at present? They are co-operating, eliminating overlapping schedules and getting together as airlines, whereas in this country the Minister is doing precisely the opposite. He is splitting up our traffics between competing British firms and hiving off interests from the Corporations to private competitive airlines. Does he not think that he will leave British aviation in a very poor position vis-à-vis European air transport operators?

Mr. Watkinson

That is not so at all. To begin with, B.E.A., for example, is in very close pooling arrangements with mast of the European airlines, which are now adopting what may well be considered a rather sensible method of rationalisation of spares, maintenance and so on—so our links with this arrangement are already very close. This is not at all the moment to say that our policies in this country are necessarily wrong in regard to what is happening in Europe.

34. Mr. M. Lindsay

asked the Minister of Transport and Civil Aviation what general directions he gave the chairman of British European Airways about joining the European airlines merger; and whether he will make a statement.

Mr. Watkinson

None, Sir. B.E.A.'s relations with other airlines or groups of airlines are a commercial matter, and I expect them to consider the question of their relationship with this new organisation on this basis.