Laker Airways v Department of Trade [1977]
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Laker Airways Ltd v Department of Trade [1977] 2 All ER 182 marked a significant judgment that explored the boundaries of ministerial powers and prerogative. The matter revolved around a change in civil aviation policy, specifically the decision to cancel Laker Airways' designation as a scheduled service operator.
The Secretary of State, through a reversal of aviation policy, declared a preference for a monopoly by British Airways on long-haul routes, leading to the cancellation of Laker Airways' designation. This change was implemented through a new policy guidance issued in 1976. Laker Airways challenged the Secretary of State's actions, asserting they were ultra vires and amounted to an abuse of prerogative power.
Lord Denning MR found that the new policy guidance represented a complete reversal of established policy enshrined in the Civil Aviation Act 1971. The statutory objectives aimed to prevent monopolies and encourage competition among British airlines. However, the new policy guidance favoured a British Airways monopoly, contradicting the statutory framework. Lord Denning MR held that the White Paper did not provide mere guidance but fundamentally altered the policy direction, deeming it ultra vires.
The Attorney General argued that the Secretary of State's power to withdraw Laker Airways' designation was a prerogative power beyond the court's scrutiny. Lord Denning MR disagreed, citing the constitutional principle that discretionary powers, whether derived from statute or prerogative, are subject to judicial review. The judgment drew on historical legal principles, including John Locke's treatise on prerogative. Lord Denning MR asserted that prerogative powers must align with the public good, and their exercise can be examined by the courts if done improperly or mistakenly.
Lord Denning MR emphasised that if there were valid reasons to halt Laker Airways' Skytrain service, statutory means under the Civil Aviation Act 1971 were available. The Secretary of State, however, did not invoke these provisions. By attempting to achieve the same result through withdrawing the designation, he was deemed to have misdirected himself and exercised power inappropriately. Lord Denning MR concluded that such a procedure was not contemplated by the Act, and the Secretary of State exceeded his powers.
The judgment underscored the constitutional duty of the courts to scrutinise ministerial actions when a discretionary power is misused or exceeded, especially when it affects the legitimate rights or interests of the subject. It reinforced the principle that the courts act as a check on the executive, ensuring that coercive or discretionary powers are justified and properly exercised in law.
The Secretary of State, through a reversal of aviation policy, declared a preference for a monopoly by British Airways on long-haul routes, leading to the cancellation of Laker Airways' designation. This change was implemented through a new policy guidance issued in 1976. Laker Airways challenged the Secretary of State's actions, asserting they were ultra vires and amounted to an abuse of prerogative power.
Lord Denning MR found that the new policy guidance represented a complete reversal of established policy enshrined in the Civil Aviation Act 1971. The statutory objectives aimed to prevent monopolies and encourage competition among British airlines. However, the new policy guidance favoured a British Airways monopoly, contradicting the statutory framework. Lord Denning MR held that the White Paper did not provide mere guidance but fundamentally altered the policy direction, deeming it ultra vires.
The Attorney General argued that the Secretary of State's power to withdraw Laker Airways' designation was a prerogative power beyond the court's scrutiny. Lord Denning MR disagreed, citing the constitutional principle that discretionary powers, whether derived from statute or prerogative, are subject to judicial review. The judgment drew on historical legal principles, including John Locke's treatise on prerogative. Lord Denning MR asserted that prerogative powers must align with the public good, and their exercise can be examined by the courts if done improperly or mistakenly.
Lord Denning MR emphasised that if there were valid reasons to halt Laker Airways' Skytrain service, statutory means under the Civil Aviation Act 1971 were available. The Secretary of State, however, did not invoke these provisions. By attempting to achieve the same result through withdrawing the designation, he was deemed to have misdirected himself and exercised power inappropriately. Lord Denning MR concluded that such a procedure was not contemplated by the Act, and the Secretary of State exceeded his powers.
The judgment underscored the constitutional duty of the courts to scrutinise ministerial actions when a discretionary power is misused or exceeded, especially when it affects the legitimate rights or interests of the subject. It reinforced the principle that the courts act as a check on the executive, ensuring that coercive or discretionary powers are justified and properly exercised in law.
