Air Corporations Act 1949
| Jurisdiction | UK Non-devolved |
| Citation | 1949 c. 91 |
Air Corporations Act , 1949
(12, 13 & 14 Geo. 6) CHAPTER 91
An Act to consolidate the enactments relating to the constitution and functions of the British Overseas Airways Corporation, the British European Airways Corporation and the British South American Airways Corporation.
[16th December 1949]
Be it enacted by the King's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
Constitution of the corporations
1 The Air Corporations.
(1) There shall be two corporations to be known as ‘the British Overseas Airways Corporation’ and ‘the British European Airways Corporation’ and, subject to the transitional provisions of this Act as to its merger with the British Overseas Airways Corporation, there shall also be a corporation to be known as ‘the British South American Airways Corporation.’
(2) The three corporations mentioned in the preceding subsection are hereinafter referred to as ‘the corporations’ and the two corporations first mentioned therein are hereinafter referred to as ‘the permanent corporations.’
2 Constitution of the corporations.
(1) Each of the corporations shall consist of a chairman, a deputy chairman and such number of other members as the Minister may from time to time determine:
Provided that—
(a ) the total number of members of each corporation shall not be less than five nor more than eleven;
(b ) two deputy chairmen of the British Overseas Airways Corporation may be appointed.
(2) The members of each of the corporations shall be appointed by the Minister, who shall also appoint the chairman and deputy-chairman or deputy-chairmen of each corporation from among its members.
(3) The supplementary provisions contained in the First Schedule to this Act shall have effect in relation to each of the corporations.
Functions of the corporations
3 Functions of the corporations.
(1) Each of the corporations shall, subject to the provisions of this Act, have power to provide air transport services and to carry out all other forms of aerial work, and may provide such services and carry out such work, whether on charter terms or otherwise, in any part of the world; and it shall be the duty of each of the corporations to exercise those powers so as to secure that the air services which they may provide are developed to the best advantage, and, in particular, to exercise those powers so as to secure that the services provided by the corporation are provided at reasonable charges.
(2) Each of the corporations shall have power, subject as hereinafter provided, to do anything which is calculated to facilitate the discharge of their functions under the preceding subsection, or of any other functions conferred or imposed on the corporation by or under this Act, or is incidental or conducive to the discharge of any such functions.
(3) The Minister may, by an order relating to any of the corporations, define the powers conferred upon the corporation by the preceding provisions of this section so far as he thinks it desirable so to do for the purpose of securing that the public are properly informed as to the general nature and scope of the activities in which the corporation may engage; but nothing in any such order shall prejudice the generality of the powers conferred by the preceding provisions of this section.
Save as may be expressly provided by an order made under this subsection, none of the corporations shall have power to manufacture air-frames or aero-engines or airscrews.
(4) Without prejudice to the generality of the powers conferred by the preceding provisions of this section, each of the corporations shall in particular have power, subject as hereinafter provided—
(a ) to acquire any undertaking constituted for the purpose of providing air transport services or of engaging in any other activities of a kind which the corporation have power to carry on, or to acquire, hold or have any shares or stock in, or any financial interest in, any such undertaking;
(b ) to promote the formation of any such undertaking as is mentioned in the preceding paragraph; and
(c ) to lend money to, or enter into guarantees for the benefit of, any such undertaking as aforesaid.
(5) The Minister may, by an order relating to any of the corporations, limit the powers of the corporation, to such extent as he thinks desirable in the public interest, by providing that any power of the corporation specified in the order shall not be exercisable except in accordance with a general or special authority given by him.
(6) Any statutory instrument containing an order made under this section shall be subject to annulment in pursuance of a resolution of either House of Parliament.
4 Appointment of committees.
4. Each of the corporations shall appoint such committees, with such advisory or executive functions, as are necessary for the purpose of securing the efficient discharge of the functions of the corporation, and, in particular, for the purpose of securing that those functions are exercised with due regard to the circumstances and requirements of particular areas.
5 General powers of Minister in relation to the corporations.
5. The Minister may, after consultation with any of the corporations, give to that corporation directions of a general character as to the exercise and performance by that corporation of their functions in relation to matters appearing to the Minister to affect the national interest; and the corporation concerned shall give effect to any such directions.
6 Use of aircraft registered in His Majesty's dominions.
6. Without prejudice to their general duty to comply with directions given by the Minister under this Act, each of the corporations shall in particular comply with such directions as may from time to time be given by the Minister, after consultation with the corporation, for securing that, to such extent and in such cases as may be specified in the directions, aircraft used by the corporation in connection with any service operated by them shall be registered in some part of His Majesty's dominions.
7 Corporations not to be exempt from taxation, etc.
(1) Except in so far as is otherwise provided by sections twenty-seven and thirty-three of this Act, it is hereby declared that nothing in this Act exempts any of the corporations from liability for any tax, duty, rate, levy or other charge whatsoever, whether general or local.
(2) It is hereby declared that no provision of this Act conferring any power or imposing any duty upon any of the corporations authorises the disregard by the corporation of any rule of law, whether having effect by virtue of any enactment or otherwise.
(3) Without prejudice to the generality of the provisions of the last preceding subsection, nothing in this Act shall be construed as exempting any of the corporations, or any person employed by any of the corporations, from compliance with the provisions of any Order in Council made or having effect under section thirteen of the Civil Aviation Act, 1949 (which relates to the licensing of air transport and commercial flying).
Borrowing powers
8 Borrowing powers of the corporations.
(1) Each of the permanent corporations may, with the consent of the Treasury, or in accordance with the terms of any general authority given by the Treasury, borrow temporarily, by way of overdraft or otherwise, such sums as the corporation may require for meeting their obligations or discharging their functions.
(2) Subject to the provisions of this Act, each of the permanent corporations may, with the consent of the Treasury, borrow money by the issue of stock for all or any of the following purposes, that is to say—
(a ) the provision of working capital;
(b ) the promotion of other undertakings, the acquisition of other undertakings or of shares or stock in other undertakings, and the making of loans to, and the fulfilment of guarantees given for the benefit of, other undertakings;
(c ) the redemption of any stock which the corporation are required or entitled to redeem; and
(d ) any other expenditure properly chargeable to capital account, including the repayment of any money temporarily borrowed under subsection (1) of this section for any of the purposes mentioned in the preceding paragraphs of this subsection.
9 Provisions as to stock of the corporations.
(1) Each of the permanent corporations may create and issue any stock required for the purpose of exercising their powers under the last preceding section, and may also, with the consent of the Treasury, create and issue stock which is to be allotted as consideration for the acquisition of other undertakings or of shares or stock in other undertakings.
(2) Subject to the provisions of subsection (1) of section twenty-eight of this Act, stock issued by any of the corporations and the interest thereon shall be charged on the undertaking and all property and revenues of that corporation.
(3) Subject to the provisions of this Act, the stock of each of the corporations shall be issued, transferred, dealt with and redeemed upon such terms and in accordance with such regulations as the Minister, with the approval of the Treasury, may prescribe, and any such regulations may, in relation to any such stock, apply with or without modifications any provisions of the Local Loans Act, 1875,...
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