Air Corporations Act 1967
| Jurisdiction | UK Non-devolved |
| Citation | 1967 c. 33 |
| Year | 1967 |
Air Corporations Act 1967
1967 CHAPTER 33
An Act to consolidate, with certain exceptions, the provisions of the Air Corporations Acts 1949 to 1966.
[10th May 1967]
Be it enacted by the Queen'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 and functions of the corporations
1 The Air Corporations.
(1) There shall continue to be two corporations known as the British Overseas Airways Corporation and the British European Airways Corporation.
(2) The corporations mentioned in the preceding subsection are hereinafter referred to as ‘the corporations’.
2 Constitution.
(1) Each of the corporations shall consist of a chairman, a deputy chairman and such number of other members as the Board of Trade (hereinafter referred to as ‘the Board’) 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 Board, 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 Schedule 1 to this Act shall have effect in relation to each of the corporations.
3 Functions.
(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 Board may, by an order relating to either of the corporations, define the powers conferred upon the corporation by the preceding provisions of this section so far as they think 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, neither 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 Board may, by an order relating to either of the corporations, limit the powers of the corporation to such extent as they think 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 the Board.
(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 General directions.
4. The Board may, after consultation with either 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 Board to affect the national interest; and the corporation concerned shall give effect to any such directions.
5 Use of aircraft registered in Her Majesty's dominions.
5. Without prejudice to their general duty to comply with directions given by the Board under this Act, each of the corporations shall in particular comply with such directions as may from time to time be given by the Board, 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 Her Majesty's dominions.
6 Corporations not to be exempt from taxation, etc.
(1) It is hereby declared that nothing in this Act exempts either 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 either of the corporations authorises the disregard by the corporation of any rule of law, whether having effect by virtue of any enactment or otherwise.
General financial provisions
7 Borrowing powers.
(1) Subject to the limits imposed by sections 16 and 22 of this Act, each of the corporations, with the consent of the Board and the approval of the Treasury, or in accordance with the terms of any general authority issued by the Board with the approval of the Treasury, may 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 those limits, each of the corporations may borrow from the Board, or, with the consent of the Board and the approval of the Treasury, may borrow by the issue of stock, such sums as the corporation may require 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 borrowed by the corporation for defraying expenditure properly so chargeable.
(3) Subject to those limits, each of the corporations may borrow, from such persons and on such terms as the Board may with the approval of the Treasury from time to time specify, any sums of foreign currency required by the corporation for defraying expenditure properly chargeable to capital account, including the repayment of any money borrowed by the corporation for defraying expenditure properly so chargeable.
8 Exchequer loans.
(1) The Board may with the approval of the Treasury advance to either of the corporations any sums which, within the limits imposed by sections 16 and 22 of this Act, the corporation have power to borrow under section 7(2) of this Act.
(2) Any advances made by the Board under this section shall be repaid to them at such times and by such methods, and interest thereon shall be paid to them at such rates and at such times, as they may with the approval of the Treasury from time to time direct.
(3) The Treasury may issue out of the Consolidated Fund to the Board such sums as are necessary to enable them to make advances under subsection (1) of this section.
(4) For the purpose of providing sums to be issued under the last preceding subsection, or of providing for the replacement of sums so issued, the Treasury may at any time, if they think fit, raise money in any manner in which they are authorised to raise money under the National Loans Act 1939 ; and any securities created and issued to raise money under this subsection shall be deemed for all purposes to have been created and issued under that Act.
(5) Any sums received by the Board under subsection (2) of this section shall be paid into the Exchequer, and shall be issued out of the Consolidated Fund at such times as the Treasury may direct, and shall be applied by the Treasury as follows, that is to say—
(a ) so much thereof as represents principal shall be applied in redeeming or paying off debt of such description as the Treasury think fit, and
(b ) so much thereof as represents interest shall be applied towards meeting such part of the annual charges for the National Debt as represents interest.
(6) The Board shall, in respect of each financial year, prepare, in such form and manner as the Treasury may direct, an account of sums issued to them under this section and of the sums to be paid into the Exchequer under subsection (5) of this section and of the disposal by them of those sums respectively, and shall send it to the Comptroller and...
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