§ Lord Boyd-Carpenterasked Her Majesty's Government:
Whether the consideration of the situation arising from the proposed amalgamation of British Airways and British Caledonian Airways will include the steps necessary to secure the continuance of competition in respect of air services between the United Kingdom and Western Europe.
§ The Secretary of State for Trade and Industry (Lord Young of Graffham)The proposed acquisition of British Caledonian by British Airways is currently being investigated by the Monopolies and Mergers Commission. I have the power to prevent the merger or impose conditions on it only if the Commission conclude that it would operate against the public interest. In considering a merger proposal the Monopolies and Mergers Commission must take into account all matters which appear to them in the circumstances to be relevant. Section 84(1) of the Fair Trading Act also requires them to take into account a number of specific factors, including the desirability of maintaining and promoting both competition in the United Kingdom, and competitve activity in markets outside the United Kingdom by producers of goods and suppliers of goods and services in the United Kingdom.