British Airways Ltd Formed
by probably one of the most important mergers in British airline
history, British Airways Ltd brought together not only a number
of airlines, but more importantly, it brought together three
men who would later form the backbone of the BOAC Board during
the early 1940s and beyond: Pearson, McCrindle and d’Erlanger.
Whitehall Securities was founded in 1907 to handle the business
activities of Weetman Dickinson Pearson, who later became 1st
Viscount Cowdray; in 1935 his younger son, Clive Pearson, was
Managing Director of Whitehall Securities in which the d’Erlanger
Banking House now had a considerable interest. Whitehall also
had an interest in Spartan Airlines and Jersey Airways and in
April 1935 Whitehall and Jersey Airways were combined to form
United Airways. The next airline to join was Hillman’s Airways
whose founder was Ted Hillman. However, Hillman’s Airways
had become a public Company in December 1934 and control of the
company had passed to Whitehall securities. Hillman died very
shortly after this and Major Ronald McCrindle became Managing
Director of the company. McCrindle and Pearson were well acquainted
with each other and it then became only a matter of time before
they came together to form Allied British Airways in September
1935; the name was changed to British Airways Ltd in October
and British Continental Airways was absorbed on 1 August 1936
and Crilly Airways a month later. British Airways Ltd Clive Pearson,
Chairman British Airways Ltd Meanwhile Imperial Airways was coming
under increasing criticism for its lack of investment in Europe,
the obsolete fleet and poor labour relations, in particular with
the pilots. After some debate in Parliament during November 1937,
the government set up an enquiry under the chairmanship of Lord
Cadman. Journal of Aeronautical History Paper No. 2013/03 140
The Report (known as the Cadman Report) was published in March
1938 and amongst other recommendations the report confirmed that
Imperial Airways should continue to operate to the Commonwealth
countries and that British Airways should operate within Europe
but should also explore the viability of a British service to
West Africa and on to South America. The one exception to this
division of interest was the suggestion that a single company
be set up by Imperial and British Airways to operate jointly
on the London to Paris route.
It should be noted that apart from this last suggestion of a
joint operation on a single route, at no stage did Cadman recommend
the formation of a joint airline overall, nor did he propose
any form of publicownership. There was also considerable criticism
of the Imperial board, though whether it was entirely justified
or not is more open to question. However the fact remained that
a number of senior Board members had to go. Cadman also insisted
that each company should have a Chairman (as opposed to a Managing
Director in the case of Imperial) and while British Airways already
had a Chairman in Pearson, Imperial had one imposed in the form
of Sir John Reith who was appointed on the 4th of July 1938.
Sir John Reith (1889-1971) had been a very successful Managing
Director of the BBC for the16 years since its inception
and today would have probably been described as a “Mandarin”
in government circles; able to take his skill anywhere. He did,
however, come to the new Corporation with a reputation for strong
advocacy in public service as it had applied to the BBC and it
was his belief (and his alone, it would appear) that Imperial
Airways and British Airways should be amalgamated into one world-wide
company The ancestry of British Airways Major Ronald McCrindle
Managing Director British Airways and Imperial Airways European
routes 1936 - 37 Journal of Aeronautical History Paper No. 2013/03
141 He also believed that such a company should be free of any
private share-holding and should be run, like the BBC, as a public
Corporation. Service to the public rather than profits and dividends
should be the driving force, thus laying down the ethos which
in my view would hinder BOAC for the next 20 years and beyond.
Reith also advocated the concept that BOAC should one day be
a “Commonwealth airline” embracing the Dominions and
Colonies throughout the world Even more surprising in my view
was that a Conservative government would agree to a nationalised
air transport system and that there were men nominated to the
Board, Pearson, McCrindle and Runciman, who were all from private
enterprise and who would agree with Reith as well. But they dis
Associated with Hillmans. United and Spartan. 'British Airways'
moved to Heston in May 1938. |
