AIRWAYS MERGER

Otago Daily Times, Issue 23858, 12 July 1939, Page 11

AIRWAYS MERGER

PROGRESS OF THE BILL SECOND READING CARRIED (British Official Wireless) RUGBY, July 10. (Received July 11, at 7 p.m.) The second reading of the Bill to give effect to the Government’s decision to merge Imperial Airways and British Airways into one big public corporation to make for further and better provision for the operation of air transport services was moved in the House of Commons by the Secretary for Air, Sir Kingsley Wood, who stated that the new corporation would continue the overseas services now run by the constituent companies. Arrangements were also already in contemplation for the inception of new services in various parts of the world. The chief among these were extended services in Europe, the transTasman service, a service across the north Atlantic, and a service to West Africa and across the south Atlantic. A trans-Pacific service was also in contemplation. The Bill was criticised by the Labour opposition, principally in respect to its financial provisions, which, it contended, would start the corporation with an excessive capital burden. Mr H. B. Lees-Smith moved an amendment hostile to the Bill as it failed to establish a unified system that could be operated solely in the public interest, while permitting private profits. The amendment was defeated by 209 to 130 votes, and the Bill passed its second reading.