§ Mr. Leachasked the Secretary of State for Air what is the reason for the practice of the Air Ministry in consulting Imperial Airways, Limited, before making grants to any other air company?
§ Sir K. WoodThe Agreement between the Air Ministry and Imperial Airways, Limited, dated 9th March, 1929 (which 421W does not expire until 31st March, 1939) provides that during its continuance no subsidy in cash or kind shall be granted in respect of any transport service with heavier-than-air machines in any part of Europe or on certain specified routes to any other undertaking. Before grants can be made to any other air company in respect of services affected by this Agreement the consent of Imperial Airways, Limited, to the waiver of their rights must, therefore, be obtained.