Air Transport World

U.K. airline policy set. (British Airways compete more abroad, less domestically)

The shape of air transport industry in the United Kingdom, with British Airways continuing to be the dominant carrier but with increased competitive opportunities for the other ailines, has now been established for the remainder of the century after a searching inquiry by the Civil Aviation Authority, and the Government of Prime Minister Margaret Thatcher.

Although Colin Marshall, CEO of British Airways, denied afterwards that there had been any victors, the general feeling here is that BA came out of the whole affair well, and certainly without being "torn apart" which, according to the airline's Chairman, Lord King, would have happened had the original proposals made by the CAA gone through.

In fact, BA will hand over its routes to Jeddah, Dhahran and Riyadh, in Saudi Arabia, with a profit potential of pounds sterling 18 million ($22 million) annually, to Birtish Caledonian which, in return, will give BA its routes to South America. Sir Adam Thomson, chairman of BCAL, has said his airline lost pounds sterling 6 million ($7. …

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