Airports Act 1986

13 Transfer of airport undertakings of local authorities to companies owned by such authorities

(1) The Secretary of State may give to any principal council who control (whether alone or jointly with one or more other principal councils) an airport to which this section applies in accordance with section 14, a direction requiring the council to form a company for the purpose of carrying on—

(a) the business of operating the airport as a commercial undertaking; and

(b) any activities which appear to the council to be incidental to or connected with carrying on that business.

(2) The company shall be a company limited by shares and registered under the [1985 c. 6.] Companies Act 1985, and shall be formed by the council before such date as the Secretary of State may specify in his direction under subsection (1).

(3) In the case of an airport which is jointly controlled by two or more principal councils the Secretary of State may give a direction under subsection (1) to such one of those councils as he thinks fit; but in any such case the council to whom the direction is given must consult the other principal council or councils before forming a company in accordance with the direction.

(4) The Secretary of State may revoke a direction given by him under subsection (1) at any time before a company has been formed in accordance with the direction.

(5) References in subsection (1) to carrying on the business of operating an airport as a commercial undertaking include references to carrying on any activities which, at the time when the direction in question is given, are carried on at the airport or on airport land—

(a) by the principal council, or (as the case may be) any of the principal councils, who control the airport,

(b) by any subsidiary by whom the airport is owned as mentioned in section 12(3),

(c) by any person managing the airport under the terms of any lease or other arrangement made by or on behalf of the principal council or councils who control it or by any such subsidiary, or

(d) by any person who has been granted a right to carry on activities there by any council, subsidiary or person falling within any of the preceding paragraphs,

with the exception of any activities which the Secretary of State has, before the date referred to in subsection (2), agreed with the principal council or councils who control the airport should not be carried on by the company to be formed in pursuance of the direction.

(6) In subsection (5) " airport land ", in relation to an airport, means land which is attached to the airport and was on 1st April 1986 administered with the airport as a single unit.

(7) This section and section 15 (together with section 12(3) and (4)) shall apply to a metropolitan county passenger transport authority as they apply to a principal council.