§ Directive to the Air Transport Advisory Council
§ The following are the general conditions governing the approval by the Minister of applications by charter companies to undertake scheduled services on particular routes. When making recommendations to the Minister, the Air Transport Advisory Council are asked to see that these conditions are fulfilled:
- It is the Government policy, in accordance with the Civil Aviation Act, 1946, that the scheduled British air services to and from the U.K. and internally shall normally be undertaken by the British Corporations.
- (ii) The Minister proposes, however, in continuation of the arrangements made last year, and as an interim policy that in certain cases, referred to below, the Corporations should appoint independent operators as associates under Section 14 (4) of the Act to help them to perform their functions. No subsidies will be granted.
- (iii) In considering applications for scheduled services on any route, it will be necessary to take into account the cost of supplying ground and navigational facilities, if not already available and normally to avoid recommendations which would involve new expenditure of this character.
- (iv) Maximum fares and freight rates for any services may, if considered expedient, be laid
153 down by the Council. Fares and freight rates on routes operated by the Corporations, or that might be held to compete with such routes, shall not be less than those charged by the Corporations except in agreement with them. - (v) The period of an Associate Agreement should not normally exceed two years. The Minister reserves the right to terminate, without notice, any Associate arrangements made, if at any time it appears to him that the safety or other conditions laid down are not being carried out. No compensation will be paid to the operator when the service ceases.
- (vi) The Airways Corporation concerned shall be given fourteen days to state its views to the Council on each application.
- (vii) Operators must observe the safety standards with which the Corporations are required by the Minister to comply. The operators will also be required to make monthly returns to the Minister showing the types and registration marks of the aircraft employed. and traffic data, as may be prescribed.
- (viii) (a) In compliance with Section 41 of the Civil Aviation Act, companies granted associate agreements must observe terms and conditions of employment in accordance with an agreement for the time being in force between that company and organisations representative of the persons employed or, failing such an agreement, not less favourable than the terms and conditions observed by the Corporations. In the case of agreements negotiated between a company granted an associate agreement and organisations representative of the persons employed, the terms and conditions of employment shall be not less favourable than those contained in agreements negotiated through the machinery of the National Joint Council for Civil Aviation.
(b) In the event that an award is given by the Industrial Court under Section 41 (3) of the Civil Aviation Act to the effect that the 154W requirement contained in sub-section (1) is not complied with, the associate agreement will be terminated forthwith. As and when action has been taken by the undertaking to comply with the requirements in accordance with the award of the Industrial Court an application for the renewal of an associate agreement may be addressed to the Air Transport Advisory Council.
- (ix) Recommendations on applications for the operation of international services made in accordance with (xi) below will be subject to review by the Minister in the light of the arrangements between the United Kingdom Government and the Governments of the countries concerned for the operation of scheduled air services.
- (x) Associate arrangements that would hamper the planned development of the Corporations' services should not be recommended.
- (xi) The Associate arrangements should, in general, be in respect of the following types of services:
- (a) Internal "ferry" and "cross-country" services
- (b) Internal seasonal services, that is services to holiday resorts on routes not in operation by a Corporation, or services on routes where, because of holidays or other special circumstances, there are large fluctuations of traffic involving excesses of traffic demand over the capacity provided by the Corporation's air services.
- Associate arrangements will only be approved in exceptional circumstances for the operation of scheduled services of other types.
- (xii) If the Minister does not accept a recommendation of the Council he will, except in cases referred to in (ix) above, give them his reasons in writing.
- (xiii) The above conditions may be varied by the Minister from time to time.