The government had come to the conclusion that the national interest would best be served by a merger of the airframe interests of BAC and Hawker Siddeley into a single company.
The government envisaged acquiring BAC's capital and merging it with Hawker Siddeley. The ownership of BAC would thus give the government a minority stake in the new company. Although BAC's parent companies were prepared to sell their shares for a reasonable price, the government proposal, in their view, undervalued the group. By August 1967, the success of the BAC 1–11 and defence sales to Saudi Arabia made the prospect of the parent companies selling their shares less likely. In December 1967, Anthony Wedgwood Benn, the Minister of Technology, while reiterating his desire to see a merged BAC and HSA, admitted it would not be possible
Hawker Siddeley Aircraft was formed in 1935 as a result of the purchase by Hawker Aircraft of the companies of J. D. Siddeley, the automotive and engine builder Armstrong Siddeley and the aircraft manufacturer Armstrong Whitworth Aircraft. At this time, Hawker Siddeley also acquired A.V. Roe & Company (Avro), Gloster Aircraft Company (Gloster) and Air Training Services. The constituent companies continued to produce their own aircraft designs under their own name as well as sharing manufacturing work throughout the group.
deHaviland Dove / deHaviland Heron / deHaviland DH.82 Tigermoth / deHaviland DH.84 Push Moth / deHaviland DH.89 Dominie / deHaviland DH.106 Comet // Handley Page H.P.42
deHavilland DH.110 Seavixen / deHavilland DH.100 Vampire / deHavilland DH.112 Venom / deHavilland DH.115-T.11 Trainer Vampire / deHaviland DHC-2 Beaver /
deHavilland DH125 Jet Dragon / deHavilland DHC-3 Otter / deHaviland DHC-6 Twin Otter / deHaviland DHC-7 Dash 7 / deHaviland DHC-8 Dash 8 / Airco DH.9 WW1
British Commercial Aircraft.
Tower: "Delta 351, you have traffic at 10 o'clock, 6 miles."
Delta 351: "Give us another hint! We have digital watches."