§ Mr. John Browneasked the Minister for Trade if he will make a statement on British Airways' unaudited profit figures for 1982–83; if he will list the main reason for the turnround from loss in 1981–82 into profit in 1982–83; what estimates he has made of likely loss or profit by British Airways in the current year; and whether the airline is on course for privatisation.
§ Mr. SproatBritish Airways announced on 4 May 1983 that the unaudited results for 1982–83 showed a profit of £72 million. This is a remarkable turnaround from the previous year's loss of £545 million. I am very pleased that British Airways is now making a profit after the payment of debt interest, and after taxation, and I congratulate Sir John King and all the staff at BA on this exceptional achievement, which has resulted from hard work and a willingness to accept and co-operate in changes for the good of the airline.
290WThe main reasons for this turn into profitability include: an increase in airline revenue; the construction of a very strong top management team, including the appointment last June of Mr. Gordon Dunlop as chief finance officer — appointed to the board in May 1983 — and the appointment in February of Mr. Colin Marshall as chief executive — appointed to the board in May 1983. In addition, since the Conservative Government took office, BA has cut its work force from some 59,000 to its present level of some 37,500. BA was previously massively overmanned. BA has also closed 62 unprofitable routes, closed 25 stations, and sold off 68 aircraft; it has sold properties plus to requirements to the value of £16 million. It has sold International Aeradio Ltd. into the private sector with proceeds of £60 million.
The BA management has said it expects to make considerably greater profits in the current year. The airline is now on course for early privatisation.