§ Mr. LEWISasked the Under-Secretary of State for Air whether, before the agreement for a subsidised air service to Scandinavia is signed, he will suggest to the two British companies interested in this air route the desirability of their amalgamating and will allow time for the necessary negotiations to take place before coming to any final decision as to either the amount or the duration of the subsidy to be granted?
§ Sir P. SASSOONAs I have already explained, the selection of British Airways to operate the proposed Scandinavian service was made by the Interdepartmental Committee on International Air Communications, after full consideration of all relevant factors. My Noble 393W Friend is satisfied that their recommendation to this effect was in the public interest, and he could not, therefore, accept the suggestion of my hon. Friend. In so far, however, as it is proper for him to express an opinion, he would be very glad to see an amalgamation between the two companies mentioned. In present circumstances, civil aviation is a costly business, and it appears to him that it would be a distinct advantage if two competent, and in some respects competing, undertakings, could amalgamate their resources and experience, and thereby ensure economy in such matters as working operation, the provision of reserves, and general co-operation of effort.