§ Mr. Carter-Jonesasked the Prime Minister what discussions she has had with the chairman of British Airways about whether the Bermuda 2 air routes agreement must be settled before British Airways can be privatised; and if she will make a statement.
§ The Prime MinisterThis matter was discussed when I met the chairman of British Airways on 17 March. He confirmed that British Airways supports Her Majesty's Government's efforts to achieve a successful outcome in the current negotiations on the Bermuda 2 agreement.
§ Mr. Carter-Jonesasked the Prime Minister if she has received any reports of the effect of changing and delaying the dates for the privatisation of British Airways on staff morale at all levels; if she will now send a message of encouragement to the chairman and all his employees; and if she will make a statement.
§ The Prime MinisterThe Government have never set a date for the privatisation of British Airways and I regret that it is still not possible to do so. I know that this has been a major disappointment for the board and staff of British Airways. The company and all its employees deserve great credit for bringing the airline to a state of readiness for privatisation, which I hope will soon be achieved.
§ Mr. Carter-Jonesasked the Prime Minister if she will make it her policy not to take any action to prevent British Airways from purchasing or giving firm orders for (a) necessary replacement aircraft, (b) new aircraft for replacement or expansion of trade, (c) refurbishing existing aircraft and (d) modern avionic navigational and safety equipment from now until the mid 1990s; and if she will make a statement.
§ The Prime MinisterBritish Airways has received authorisation for all the major equipment needs it currently 331W foresees for the immediate future and has no requests for investment approval outstanding. Satisfaction of British Airways' further investment requirements will continue to depend on the viability of the investment, and the performance of the business, which will necessarily determine the company's ability, both before and after privatisation, to raise finance from its shareholders and elsewhere.
§ Mr. Carter-Jonesasked the Prime Minister if she will make a statement on the change in the performance of British Airways over the past three years: and if she will make a statement.
§ The Prime MinisterBritish Airways has turned a pre-tax loss of £110.6 million in 1981–82 into a profit of £168.1 million in 1984–85 and I understand that it is now one of the world's most profitable major international airlines.
§ Mr. Carter-Jonesasked the Prime Minister if she will make a statement on Government policy on the future of British Airways.
§ The Prime MinisterI have nothing to add to the statement which my right hon. Friend the Secretary of State for Transport made on this subject on 12 March at columns 482–3.