Commentary on Sections Note on abbreviations Section 5: Public airport companies: power of Secretary of State to specify additional activities
40.Section 17(4) of the 1986 Act bars a local authority owned airport company (known as a “public airport company”), or any subsidiary, from engaging in activities in which none of its shareholding local authorities has the power to engage.
41.Section 5 amends the 1986 Act in two ways. Subsection (2) amends section 17 of the 1986 Act to provide that the bar in section 17(4) shall not apply in relation to activities permitted under a new section 17A.
42.Subsection (3) inserts a new section 17A into the 1986 Act which allows the Secretary of State, by regulations, to specify what activity will be a permitted activity. To be so specified, he must consider the activity to be incidental to or connected with the business of operating a commercial airport. The regulations may set conditions on the permitted activities, for example limiting their scope to activities of a commercial nature or to activities carried out in certain countries or territories. By virtue of section 79 of the 1986 Act, the regulations are subject to the negative resolution procedure.