British Airways

HC Deb 12 December 1977 vol 941 cc1-4

2. Mr. Michael McNair-Wilson

asked the Secretary of State for Trade what dis cussions he has had with the Chairman of British Airways about the purchase of new aircraft for the airline.

4. Mr. Terry Walker

asked the Secretary of State for Trade if he will discuss with the Board of British Airways its plans to purchase foreign aircraft to renew its present fleet.

15. Mrs. Hayman

asked the Secretary of State for Trade if he will make a statement on the future purchasing policy of British Airways.

The Under-Secretary of State for Trade (Mr. Clinton Davis)

At this stage the evaluation of the relative merits of the various possible replacement aircraft is a matter for British Airways, but my right hon. Friend and I are arranging to meet the chairman shortly to discuss the airline's re-equipment position.

Mr. McNair-Wilson

Does the Minister hold the view that British Airways should be allowed freedom to use its commercial judgment without interference in ordering any new aircraft? If it decides to buy American, can he say whether either the Boeing or Douglas or parts of it could be built under sub-contract by British Aerospace?

Mr. Davis

The second part of that question is clearly a matter for my right hon. Friend the Secretary of State for Industry. As to the first part, if I may say so with respect, the hon. Gentleman has put the matter a little simplistically because, whilst it is perfectly true that British Airways is entitled to and should use its commercial judgment in arriving at a fair evaluation of competing quotations, nevertheless the matter has to come to my right hon. Friend the Secretary of State, who must, of course, be able to look at wider interests too. But the commercial judgment of British Airways is obviously a very important criterion.

Mr. Walker

Will my hon. Friend have close consultations with the Department of Industry as it alone knows whether British Aerospace will be allowed to make proposals for new projects which are absolutely vital for work continuation in this country for many workers? I believe that this must be the main consideration for all of us.

Mr. Davis

Of course, consultations would take place with my right hon. Friend the Secretary of State for Industry, and there is nothing to suggest that British Aerospace will in any way be inhibited from making quotations where quotations are required from it. Indeed, nothing that has arisen in recent weeks suggests otherwise.

Mrs. Hayman

Is it not a matter of concern that the Deputy-Chairman of British Airways should have seemed to pre-empt this decision? Before the meeting, will my hon. Friend make sure that British Airways has had discussions with the Department of Industry and is fully briefed as to the potential of British Aerospace in this field?

Mr. Davis

The Deputy-Chairman of British Airways was attending an informal Press conference. He denies that any quotation, which has not yet been forthcoming in any event, has been preempted by what he has said. The matter is therefore open, and it will be for British Airways, I hope very carefully and fairly, to consider all the quotations that it receives on this matter.

Mr. McCrindle

Are not British Airways' requirements for aircraft, which will have to last well into the 1980s, already well known to British Aerospace? Would not the Minister's best contribution to this controversy be to make sure that the chairmen of both corporations engage in discussions, so that the chairmen of both corporations engage in discussions, so that hopefully an aircraft will be available which would come up to the standards required by British Airways?

Mr. Davis

I am sure that that sort of discussion would take place.

Mr. Hoyle

Is my hon. Friend aware of the concern expressed by British Aerospace about the morale of the people employed in the factories, particularly in relation to the statement made by the Deputy-Chairman of British Airways?

Mr. Davis

The morale of the work-people in the factories, I dare say, might have been adversely affected by a suggestion that British Aerospace was out of the running. The suggestion is now denied and refuted. Accordingly, I hope that British Aerospace will be able to tender competitively for this very important project.

Mr. Rost

What are the Government doing to make up for their mistake in neglecting to come in on the European airbus? In particular, what are the prospects now of getting involved in this so that we may have Rolls-Royce engines with it?

Mr. Davis

The hon. Gentleman knows perfectly well that that is not my responsibility but the responsibility of the Secretary of State for Industry.