Mr. Alan WilliamsTo ask the Secretary of State for Transport what compensation was paid to British Airways for giving up landing rights at Heathrow in favour of Malaysian Airways; what was the Government's role in the negotiations leading to this concession; and from what funds compensation was provided.
730W
§ Mr. NorrisThe United Kingdom has liberal air services arrangements with Malaysia which permit the airlines of either side to operate up to a maximum proportion of the total air services operated by United Kingdom and Malaysia airlines. Following airline discussions in 1989, as commercial agreement was made between British Airways and MAS concerning the operation of a further service by the Malaysian airline. The two Governments then agreed to vary the arrangements to enable that airline to operate the further service. The Government are not privy to the details of the commercial agreement between the two airlines. No public funding formed part of the air services arrangements.