Civil Aviation Act 1946

JurisdictionUK Non-devolved
Citation1946 c. 70


Civil Aviation Act, 1946

(9 & 10 Geo. 6.) 70.

An Act to make further provision with respect to civil aviation and matters connected therewith, and, in particular, to secure the development of air transport services by corporations operating under public control.

[1st August 1946]

B E 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:—

I The Three Corporations.

Part I.

The Three Corporations.

The British European Airways Corporation and the British South American Airways Corporation.

The British European Airways Corporation and the British South American Airways Corporation.

S-1 Establishment and constitution of British European Airways Corporation and British South American Airways Corporation.

1 Establishment and constitution of British European Airways Corporation and British South American Airways Corporation.

(1) With a view to providing civil air services in various parts of the world, and, in particular, in Europe (including the British Islands) and upon routes between the United Kingdom and South America, there shall forthwith he established two corporations to be known respectively as ‘the British European Airways Corporation’ and ‘the British South American Airways Corporation.’

The said corporations are hereinafter referred to as ‘the new corporations’; and the new corporations and the British Overseas Airways Corporation are hereinafter referred to as ‘the three corporations’.

(2) Each of the new corporations shall consist of a chairman, a deputy chairman, and such number of other members, not being less than three nor more than nine, as the Minister of Civil Aviation (hereinafter referred to as ‘the Minister’) may from time to time determine.

(3) The members of the new corporations shall be appointed by the Minister, who shall also appoint two of the members of each of those corporations to be respectively chairman and deputy chairman thereof.

(4) Each of the new corporations shall be deemed to have been established as soon as a chairman, a deputy chairman, and at least three other members have been appointed.

(5) The supplementary provisions contained in the First Schedule to this Act shall have effect in relation to each of the new corporations.

Functions of the three corporations.

Functions of the three corporations.

S-2 Functions of the three corporations.

2 Functions of the three corporations.

(1) Each of the three 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 said 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 three 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 three 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 three 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 three 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 three 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 order made under this section shall be laid before Parliament immediately after it has been made, and if either House of Parliament, within the period of forty days beginning with the day on which any such order is laid before it, resolves that the order be annulled, the order shall cease to have effect but without prejudice to the validity of anything previously done thereunder or to the making of a new order.

In reckoning any such period of forty days, no account shall be taken of any time during which Parliament is dissolved or prorogued, or during which both Houses are adjourned for more than four days.

Section one of the Rules Publication Act, 1893 , shall not apply to any such order.

S-3 Appointment of committees.

3 Appointment of committees.

3. Each of the three 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.

S-4 General powers of Minister in relation to the corporations.

4 General powers of Minister in relation to the corporations.

4. The Minister may, after consultation with any of the three 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.

S-5 Use of aircraft registered in His Majesty's dominions.

5 Use of aircraft registered in His Majesty's dominions.

5. Without prejudice to their general duty to comply with directions given by the Minister under this Part of this Act, each of the three 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.

S-6 Corporations not to be exempt from taxation, etc.

6 Corporations not to be exempt from taxation, etc.

(1) It is hereby declared than nothing in this Act exempts any of the three 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 three 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 three corporations, or any person employed by any of those corporations, from compliance with the provisions of any Order in Council made under section five of the Air Navigation Act, 1936 (which relates to the licensing of air transport and commercial flying).

Borrowing powers.

Borrowing powers.

S-7 Borrowing powers of the new corporations.

7 Borrowing powers of the new corporations.

(1) Each of the new 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 under this Act.

(2) Subject to the provisions of this Act, each of the new 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.

S-8 Provisions as to stock of the new corporations.

8 Provisions as to stock of the new corporations.

(1) Each of the new...

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