§ Mr. Wallerasked the Secretary of State for Transport if he will make a further statement about the privatisation of British Airways.
§ Mr. RidleyThe Government's aim remains to privatise British Airways as soon as possible.
The Government are currently engaged in important negotiations with the United States Government about United Kingdom—United States air services and the competition law that applies to them.
The north Atlantic market is of great importance to all the British airlines which serve it, accounting, for example, for about 23 per cent. of British Airways' total revenue and about 36 per cent. of British Caledonian's total revenue. It is most important for all British airlines, not least British Airways, that we secure an agreement with the United States Government which either enables them to compete on fair and equal terms for all the traffic between our two countries or, failing that, safeguards our vital interests. Without such an agreement the ability of our airlines to maintain or improve their competitive position would be severely undermined. I made our position perfectly clear during my recent visit to the United States. I am hopeful that it will be possible to negotiate acceptable arrangements before the present ones expire this summer, but before we proceed with the privatisation of British Airways we must clarify with the United States Government the air services arrangements which govern a large part of the company's business.
During my visit to the United States of America, I also set out our continuing concern to resolve the serious dispute between our two Governments with regard to the application of United States anti-trust laws to international civil aviation. My officials are in discussion with the United States Departments concerned, but no solution of the problems has yet been found. Until the United States authorities rectify the situation, it is for British Airways and other British airlines to decide how best to deal with the implications of United States anti-trust laws, subject only to such restrictions as Her Majesty's Government may consider it necessary to impose to protect the trading interests of the United Kingdom. The seriousness of the Government's concern is amply demonstrated by the fact that four years after the collapse of Laker Airways, anti-trust litigation arising from it has not yet been concluded. The company has consistently denied any liability in this litigation, which in the view of Her Majesty's Government should not have been brought.
483WIn view of these factors I have decided, with great reluctance, that I can still not set a firm timetable for privatisation for the time being. I shall watch the situation closely, and proceed as soon as I judge the situation to be sufficiently clarified.