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Aviation History
1971
1971 - 0438.PDF
FZJGHT International, 25 March 1971 407 Aviation Bill published Details of legislative proposals concerning the British air transport industry and the setting up of a Civil Aviation Authority were disclosed last week BILL Estnhliih a •public authority: to which include JiilhorilywmwrnedwLlhc. o establish a corporation u ic function of controlling or the British Ovccidi Airways Cotoor.it the matters afo Bs|r: j T„c 15 (°l ISStoHS' """" on,: and for purposes con P«T 1 C.™ Avu™ A*™* beabmjyeyrpwalc.tobec tend herufter inihis Act I shall ccusijt st IBI leu Unn .Bpoin-ed hy the Sectary o WrilyiandlbeSeacfrjofS :-•—•.-«- i»l msrs thin two other n raw. of lh* Anthwii,. A., regulating h rfiwlfcmt f cither of nlrnU .nd """ man of the an T HE BILL TO SET up the Civil Aviation Authority and the British Airways Board, the holding board for BEA and BOAC, was published last week. The establishment of both bodies was recommended by the Edwards Committee which inquired into the British air transport industry and reported in 1969; it was also accepted by the previous Government, which published a White Paper on the subject in November of that year but did not implement it before going out of office last June. The present Government's approach to the reformation of the industry, as set out in the Bill, agrees in most general principles with the Edwards Report and the White Paper, but does not follow either in all its detail. The Civil Aviation Authority will have the task of regu lating the air transport industry as a whole. It will take over the functions now exercised by the Air Transport Licensing Board, and thus become responsible for econo mic regulation; it will also take over responsibility for airworthiness from the Air Registration Board, and the responsibilities for flight safety and the regulation of flight operations now held by the Department of Trade and Industry. The CAA will run the National Air Traffic Control Services jointly with the Secretary of State for Defence. It will also take over the operation of Aberdeen Airport and a number of aerodromes in the Highlands and Islands of Scotland, and will own the Civil Aviation Flying Unit. Some functions remain with the Department of Trade and Industry—notably responsibility for all international civil aviation relations, and for the investigation of accidents. Responsibility for matters concerning noise will remain with DoTI and other Government departments. The British Airways Board will exercise control over the activities of BOAC and BEA and their subsidiaries. One of the immediate tasks envisaged for the board by the Bill will be to review the corporation's affairs and organisation. The Bill implicitly admits of the possibility of a merger of BEA and BOAC at a later date. It is intended that the Bill should become law in time for the CAA and the British Airways Board to begin functioning in the first half of next year. It will receive its second reading on March 29, and will then go into the committee stage. The Civil Aviation Authority The three main heads under which the CAA's objectives fall, as set out in the Bill, are: ensuring the satisfaction of public demand for services at the lowest practicable fares; securing a worthwhile role for at least one independent airline (the second-force air line is clearly in mind here, although the wording seems obscure, particularly as far as the rest of the independent sector is concerned—see 3 [1] [b] below); and encourag ing the industry to increase its contribution to the national balance of payments. The reference to the need to satisfy public demand is the only direct reference in the Bill to the interests of consumers. The Bill does not propose that any of the members of the CAA (of whom there are to be between six and 12, all appointed by the Secretary of State) should be explicitly appointed to represent consumer interests. The objectives are more specific than were those of the ATLB, which were "to further the development of British civil aviation." The text of the CAA's objectives as set out in the Bill is as follows: — 3.—(1) It shall be the duty of the Authority to perform the functions conferred on it otherwise than by this section in the manner which it considers is best calculated— (a) to encourage British airlines to provide air transport services which satisfy all substantial categories of public demand (so far as British airlines may reasonably be The proposals summarised • A Civil Aviation Authority to be set up with responsibility for economic, operational and airworthiness regulation of the British airline industry. • Existing functions of the ATLB, ARB and (as to operational regulation) DoTI to be transferred to the CAA. • The ARB to be replaced by an Airworthiness Requirements Board within the CAA and advising the CAA on airworthiness matters, including design, construction and maintenance of aircraft. The manufacturing and operating industries to be represented on the board. • Responsibility for international affairs and accident investiga tion to remain with DoTI. • The CAA to run NATCS jointly with the Secretary of State for Defence. • The CAA to take over from DoTI the operation of certain aerodromes. • Responsibility for amenity matters such as noise to remain with Government departments. • The British Airways Board to be established with strategic control over BEA, BOAC and their subsidiaries. • The British Airways Board to develop the group's services and use its resources to the best advantage. • The group to be subject to economic and safety regulation by the CAA. • A merger of the two corporations would be made possible by the proposed legislation. • The CAA to be charged with securing a role for the second- force airline. expected to provide such services) at the lowest charges consistent with a high standard of safety in operating the services and an economic return on the sums invested in providing the services and with securing the sound develop ment of the civil aviation industry of the United Kingdom; (b) to secure that at least one major British airline which is not controlled by the British Airways Board has oppor tunities to participate in providing, on charter and other terms, the air transport services mentioned in the preceding paragraph; and (c) subject to the preceding paragraphs, to encourage the civil aviation industry of the United Kingdom to increase the contribution which it makes towards a favourable balance of payments for the United Kingdom and towards the prosperity of the economy of the United Kingdom. . . . The Bill provides for control to be exercised over the CAA by the Secretary of State for Trade and Industry, who "may from time to time give guidance to the Authority in writing with respect to the performance of the functions conferred on it... ." But a draft of any such written guidance must first be approved by Parliament. The Secretary of State would also be empowered to give the CAA general directions in relation to matters appear ing to it to affect the national interest. But this power would not in the event of conflict override the objectives set out above.
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