§ 17. Mr. Bowen Wellsasked the Secretary of State for Trade if, in formulating his policy towards aviation, he will take action specifically to improve and protect the position of British Airways.
§ Mr. SproatI do not intend to protect British Airways from the need to operate competitively. In formulating civil aviation policy, however, the Government will continue to give due weight to the interests of British Airways, as to those of all other British airlines.
§ Mr. WellsWill my hon. Friend list the steps that he proposes to take to return British Airways to profitability, so that it can be sold as a viable, going concern before the end of this Parliament?
§ Mr. SproatI intend to take very few steps. Those steps should be taken by the board of British Airways. Anything that it does to turn round the profits of British Airways has my full encouragement. I congratulate Sir John King and his board on the trenchant and robust measures that they are taking.
§ Mr. WoolmerWill the Under-Secretary of State give an assurance that there will be no further stripping of profitable routes from British Airways in an attempt to help other airlines? Will he examine, before taking any further decision on British Airways, the experience of the transatlantic air fare war to see whether this is not a major reason for the problems faced by British Airways, along with many other airlines?
§ Mr. SproatIn regard to the so-called war on the North Atlantic, the House should be aware that in 1980 the three British carriers operating on the route out-earned the nine American carriers—a tremendous achievement for the British airline industry, including British Airways. I have no intention of stripping any routes from British Airways at present.
§ Mr. Anthony GrantIs my hon. Friend aware that British Airways could save over £1 million a year in fuel costs and greatly enhance safety of the travelling public if duty-free goods, instead of being lugged about on aircaraft, were made available at the point of arrival rather than the point of departure? Will he note that other countries are changing to the practice that I advocate'? Will he discuss the matter with the fuddy-duddies in Her Majesty's Customs and Excise?
§ Mr. SproatWhile rejecting the epithets applied by my hon. Friend to Customs and Excise, and without being able to verify on the spot the precise figure that he has given, I shall be happy to look at what my hon. Friend suggests.
§ Mr. Clinton DavisAs it is now evident that it cannot be in the national interest to privatise British Airways in the foreseeable future or, indeed, at all, why does not the Minister make his contribution to the future viability of British Airways by undertaking to get rid of the barmy scheme that his predecessor introduced?
§ Mr. SproatI disagree in gross and in detail with the statement that the hon. Gentleman makes. It remains the Government's intention to privatise British Airways as soon as practicable.
§ Mr. McCrindleDoes it remain the Government's position that they are opposed to the disposal of the profitable British Airways subsidiaries, such as the helicopter division?
§ Mr. SproatSo far, the Government have taken the view that it would be best to sell off British Airways, when we do so, as a going concern, as far as possible. British Airways Helicopters has made substantial profits over the past few years, on which it should be congratulated. However, I would not rule out selling subsidiaries at a future date.
§ Mr. WoolmerWill the Secretary of State withdraw the suggestion that he intends to sell off British Airways? Will he confirm that, if he goes ahead with this madcap scheme, which is against all common sense for British Airways, there is no intention to sell more than a minority shareholding?
§ Mr. SproatNo, Sir. I certainly do not intend to confirm that. If the hon. Gentleman prefers the words "privatise" or "denationalise", he may use them.