
1 
This Order may be cited as the 
Airports Act 1986 (Modifications in Schedule 4 to the Transport Act 1968)
Order 1986 and shall come into operation on
21st November 1986.
2 
In this Order—
 “the Act”
means the Airports Act
1986;
 “Schedule 4”
means 
Schedule 4 to the Transport Act 1968
.
3 
For the purposes of its application
to transfers under section 15(7)
of the Act, Schedule 4
shall be modified in accordance with the provisions of the 
First Schedule to this Order.
4 
Schedule
4, as it applies by virtue of 
section 75 of the Act to transfers under 
section 15(7) of the Act and as modified in
accordance with the provisions of the First Schedule
 to this Order, and with consequential adjustments
in the headings to and numbering of the paragraphs, is set out in the 
Second Schedule to this Order.
John Moore
Secretary of State for Transport
16th October 1986Malcolm Rifkind
Secretary of State for Scotland
20th October 1986Nicholas Edwards
Secretary of State for Wales
21st October 1986
THE FIRST SCHEDULE
Article 3
1 
In paragraph 1
—
(a) in sub-paragraph
(1), for the words “an agreement
for the rendering of personal services” there shall be substituted
the words “a contract of employment”;
(b) in sub-paragraph
(4), (5) and 
(7), the words “, or on a vesting
by virtue of this Act will become,” shall be omitted; and
(c) in sub-paragraph
(7), for the words “this Act”
 there shall be substituted the words “the 
Airports Act 1986”.
2 
Paragraph 2
shall be omitted.
3 
In paragraph 3
, a colon shall be substituted for the full
stop at the end, and there shall be added the following—“
in Scotland, section
16(1) and (2) of
the Land Registration (Scotland) Act 1979
shall apply as if the transfer had been effected by deed and the words 
“unless specially qualified” were omitted from those subsections.
”.

4 
In paragraph 4
, for the words “this Act”
 there shall be substituted the words “the 
Airports Act 1986”.
5 
In paragraph 5
—
(a) for the words “Railways
Board and the Scottish Group” there shall be substituted the
words “transferor and the transferee”;
(b) for the words “this Act”
 there shall be substituted the words “the 
Airports Act 1986”;
(c) for the words “the certifying
authorities” there shall be substituted the word “them”
;
(d) for the words “one of those
authorities” there shall be substituted the words “either
of them”; and
(e) for the words “the authorities
concerned” there shall be substituted the word “they”
.
6 
In paragraph 6
—
(a) for the words “Railways
Board or the Scottish Group” there shall be substituted the
words “transferor or the transferee”;
(b) for the words “that authority”
 there shall be substituted the words “one of them”
;
(c) for the words “another of
those authorities” there shall be substituted the words 
“the other of them”;
(d) for the words “none of those
authorities or” there shall be substituted the words 
“neither the transferor nor the transferee nor”;
(e) for the words “one of those
authorities” in sub-paragraph (b)
 there shall be substituted the words 
“either the transferor or the transferee”;
(f) for the words “any of those
authorities” in both places where they occur there shall be
substituted the words “either the transferor or the transferee”
;
(g) in sub-paragraph
(b)(ii), the words “authority
or subsidiary” shall be omitted;
(h) for the words “one of those
authorities” in both places where they appear there shall be
substituted the words “the transferor or the transferee”
; and
(i) for the words “those authorities”
 there shall be substituted the words “the transferor
and the transferee”.
7 
In sub-paragraph
(c) of paragraph 7—
(a) for the words “any officer
or any servant of the transferor” there shall be substituted
the words “a person employed by, or engaged in the business of,
the transferor and holding a specified office or serving in a specified capacity”
;
(b) for the words “the officer
or servant” there shall be substituted the words “a
person employed by, or engaged in the business”; and
(c) for the words “that officer
or servant of the transferor” there shall be substituted the
words “the first mentioned person”.
8 
In paragraph 8
—
(a) for the words “this Act”
 there shall be substituted the words “the 
Airports Act 1986”;
(b) after the words “transferred
rights and liabilities” there shall be inserted “or
to any business or activity to which any of them relates”; and

(c) for the words “officers
or servants” there shall be substituted the words “persons
employed by, persons engaged in the business of, or agents”.

9 
Paragraph 9
shall be omitted.
10 
In paragraph 10
—
(a) for the words “7 to 9”
 there shall be substituted the words “7 and 8”
;
(b) for the words “this Act”
 in the first place where they appear there shall be substituted the
words “the Airports Act 1986”
;
(c) for the words “this Act”
 in the second place where they appear there shall be substituted
the words “that Act”.
11 
Paragraph 11
and sub-paragraph (1) of paragraph 12
shall be omitted.
12 
In sub-paragraph
(2) of paragraph 12, for the words 
“7 to 11” there shall be substituted the words 
“7 to 10”, and the words “the said”
 shall be omitted.
13 
In paragraph 13
—
(a) in sub-paragraph
(1), for the words “7 to 12”
 there shall be substituted the words “7 to 10”
;
(b) for the words “one of the
Boards or new authorities” in the first place where they occur
there shall be substituted the words “the transferor and the
transferee”, and for those words in the second and third places
where they occur there shall be substituted the words “the transferor
or the transferee”; and
(c) in sub-paragraph
(5) for the words “this Act”
 there shall be substituted the words “the 
Airports Act 1986”.
14 
There shall be added the following new paragraph—
“
In this Schedule:  
references
to the transferor in relation to property, rights or liabilities transferred
by the scheme shall be construed as references to the person in whom, immediately
before the transfer, the property, rights or liabilities were vested; and
  
 “statutory provision”
 means any provision, (whether of a general
or special nature) contained in, or having effect under, any Act (whether
public, general or local).
”.
THE SECOND SCHEDULE
Article 4

N.B. By virtue of the 
Transfer of Functions (Transport) Order 1981,
and subject to certain exceptions not affecting 
Schedule 4, references in the 
Transport Act 1968 to “the Minister”
 are to be read as references to the Secretary of State.“
SCHEDULE 4
1 

(1) The provisions of this paragraph shall
have effect where a transfer to which this Schedule applies is a transfer
of all property, rights and liabilities comprised in a specified part of the
transferor's undertaking, but shall not apply to any such rights or obligations
under a contract of employment.
(2) Any property, rights or liabilities held
or subsisting partly for the purpose of a part of the transferor's undertaking
which is transferred and partly for the purpose of a part of that undertaking
which is retained by the transferor shall, where the nature of the property,
rights or liability permits, be divided or apportioned between the transferor
and the transferee in such proportions as may be appropriate; and, where any
estate or interest in land falls to be so divided, any rent payable under
a lease in respect of that estate or interest, and any rent charged on that
estate or interest, shall be correspondingly apportioned or divided so that
the one part is payable in respect of, or charged on, only one part of the
estate or interest and the other part is payable in respect of, or charged
on, only the other part of the estate or interest.
(3) Sub-paragraph
(2) of this paragraph shall apply, with any
necessary modifications, in relation to any feuduty payable in respect of
an estate or interest in land in Scotland as it applies in relation to any
rent charged on an estate or interest in land.
(4) Any property, rights or liabilities held
or subsisting as mentioned in sub-paragraph (2)
 of this paragraph the nature of which does
not permit their division or apportionment as so mentioned shall be transferred
to the transferee or retained by the transferor according to which of them
appear at the transfer date likely to make use of the property, or, as the
case may be, to be affected by the right or liability, to the greater extent,
subject to such arrangements for the protection of the other of them as may
be agreed between them or, if either of them is a wholly-owned subsidiary
of some other body, as may be agreed between them and that other body.
(5) It shall be the duty of the transferor
and the transferee, whether before or after the transfer date, so far as practicable
to arrive at such written agreements, and to execute such other instruments,
as are necessary or expedient to identify or define the property, rights and
liabilities transferred to the transferee or retained by the transferor and
as will—
(a) afford to the transferor and the transferee
as against one another such rights and safeguards as they may require for
the proper discharge of their respective functions; and
(b) make as from such date, not being earlier
than the transfer date, as may be specified in that agreement or instrument
such clarifications and modifications of the division of the transferor's
undertaking as will best serve the proper discharge of the respective functions
of the transferor and the transferee;and if either the transferor or the transferee is a wholly-owned
subsidiary of some other body, references in the foregoing provisions of this
sub-paragraph to the transferor or, as the case may be, the transferee shall
include references to that other body.
(6) Any such agreement shall provide so far
as it is expedient—
(a) for the granting of leases and for the
creation of other liabilities and rights over land whether amounting in law
to interests in land or not, and whether involving the surrender of any existing
interest or the creation of a new interest or not;
(b) for the granting of indemnities in connection
with the severance of leases and other matters;
(c) for responsibility for registration of
any matter in any description of statutory register.
(7) If the transferor or the transferee (not
being in either case a wholly-owned subsidiary of some other body), or any
body of which the transferor or the transferee is a wholly-owned subsidiary,
represents to the Minister, or if it appears to the Minister without such
a representation, that it is unlikely in the case of any matter on which agreement
is required under sub-paragraph (5)
of this paragraph that such agreement will be reached, the Minister may, whether
before or after the transfer date, give a direction determining the manner
in which the property, rights or liabilities in question are to be divided
between the transferor and the transferee, and may include in the direction
any provision which might have been included in an agreement under the said 
sub-paragraph (5); and any property, rights
or liabilities required by the direction to be transferred to the transferee
shall be regarded as having been transferred to, and by virtue of the 
Airports Act 1986 vested in the transferee
accordingly.
2 
Where on any transfer to which this Schedule
applies the transferor is entitled to retain possession of any documents relating
in part to the title to, or to the management of, any land or other property
transferred to the transferee, the transferor shall be deemed to have given
to the transferee an acknowledgement in writing of the right of the transferee
to production of that document and to delivery of copies thereof; and, in
England and Wales, section 64
of the Law of Property Act 1925
shall have effect accordingly, and on the basis that the acknowledgement did
not contain any such expression of contrary intention as is mentioned in that
section: in Scotland, section 16(1)
and (2) of the 
Land Registration (Scotland) Act 1979 shall
apply as if the transfer had been effected by deed and the words “unless
specially qualified” were omitted from those subsections.
3 
Where in the case of any transfer to which this
Schedule applies any property or rights which fall to be transferred to the
transferee cannot be properly vested in the transferee by virtue of the 
Airports Act 1986 because transfers thereof
are governed otherwise than by the law of a part of Great Britain, the transferor
shall take all practicable steps for the purpose of securing that the ownership
of the property or, as the case may be, the right is effectively transferred.

4 
In the case of any transfer to which this Schedule
applies, a joint certificate by or on behalf of the transferor and the transferee,
that any property specified in the certificate, or any such interest in or
right over any such property as may be so specified, or any right or liability
so specified, is by virtue of the Airports Act
1986 for the time being vested in, or in such
wholly-owned subsidiary of, such one of them as may be so specified shall
be conclusive evidence for all purposes of that fact; and if on the expiration
of one month after a request from either of them for the preparation of such
a joint certificate as respects any property, interest, right or liability,
they have failed to agree on the terms of the certificate, they shall refer
the matter to the Secretary of State and issue the certificate in such terms
as the Secretary of State may direct.
5 
If the Secretary of State is satisfied on the
representation of the transferor or the transferee that, in consequence of
a transfer to which this Schedule applies, different interests in land, whether
the same or different land, are held by, or by a wholly-owned subsidiary of,
one of them and by, or by a wholly-owned subsidiary of the other of them and
that the circumstances are such that this paragraph should have effect, the
Secretary of State may direct that this paragraph shall apply to such of that
land as may be specified in the direction, and while that direction remains
in force—
(a) neither the transferor nor the transferee
nor their subsidiaries entitled to any interest in any of the specified land
shall dispose of that interest except with the consent of the Secretary of
State;
(b) if in connection with any proposal to
dispose of an interest of either the transferor or the transferee or their
subsidiaries in any of the specified land it appears to the Secretary of State
to be necessary or expedient for the protection of any other of them, the
Secretary of State may—
(i) require either the transferor or the
transferee or their subsidiaries entitled to an interest in any of the specified
land to dispose of that interest to such person and in such manner as may
be specified in the requirement; or
(ii) require either the transferor or the
transferee or their subsidiaries to acquire from any other of them any interest
in any of the specified land to which that other is entitled; or
(iii) consent to the proposed disposal subject
to compliance with such conditions as the Secretary of State may see fit to
impose;but a person other than the transferor or the transferee or their
subsidiaries dealing with, or with a person claiming under, the transferor
or the transferee or subsidiaries shall not be concerned to see or inquire
whether this paragraph applies or has applied in relation to any land to which
the dealing relates or as to whether the provisions of this subsection have
been complied with in connection with that or any other dealing with that
land, and no transaction with or between persons other than the transferor
and the transferee or subsidiaries shall be invalid by reason of any failure
to comply with those provisions.
6 
Where in the case of any transfer to which this
Schedule applies any of the rights or liabilities transferred are rights or
liabilities under an agreement to which the transferor was a party immediately
before the transfer date, whether in writing or not, and whether or not of
such nature that rights and liabilities thereunder could be assigned by the
transferor, that agreement shall have effect on and after the transfer date
as if—
(a) the transferee had been a party to the
agreement, and
(b) for any reference (however worded and
whether express or implied) to the transferor there were substituted, as respects
anything falling to be done on or after the transfer date, a reference to
the transferee, and
(c) any reference (however worded and whether
express or implied) to a person employed by, or engaged in the business of,
the transferor and holding a specified office or serving in a specified capacity
were, as respects anything falling to be done on or after the transfer date,
a reference to such person as the transferee may appoint or, in default of
appointment, to a person employed by, or engaged in the business of, the transferee
who corresponds as nearly as may be to the first mentioned person, and
(d) where the agreement refers to property,
rights or liabilities which fall to be apportioned or divided between the
transferor and the transferee, as if the agreement constituted two separate
agreements separately enforceable by and against the transferor and the transferee
respectively as regards the part of the property, rights and liabilities retained
by the transferor or, as the case may be, the part thereof vesting in the
transferee and not as regards the other part;
and sub-paragraph (d)
of this paragraph shall apply in particular to the covenants, stipulations
and conditions of any lease by or to the transferor.
7 
Save as otherwise provided by any provision
of the Airports Act 1986
(whether expressly or by necessary implication) 
paragraph 6 of this Schedule, except 
sub-paragraph (a) thereof, shall apply in relation
to any statutory provision, any provision of any agreement to which the transferor
was not a party, and any provision of any document other than an agreement,
if and so far as the provision in question relates to any of the transferred
property, rights, liabilities or functions or to any business or activity
to which any of them relates, as it applies in relation to an agreement to
which the transferor was a party, and, in relation to any such statutory or
other provision as aforesaid, references in 
sub-paragraphs (b) and (c)
of that paragraph to the transferor and to any persons employed by, persons
engaged in the business of, or agents of the transferor include references
made by means of a general reference to a class of persons of which the transferor
is one, without the transferor himself being specifically referred to.
8 
Without prejudice to the generality of the provisions
of paragraphs 6 and 
7 of this Schedule, the transferee under a
transfer to which this Schedule applies and any other person shall, as from
the transfer date, have the same rights, powers and remedies (and in particular
the same rights and powers as to the taking or resisting of legal proceedings
or the making or resisting of applications to any authority) for ascertaining,
perfecting or enforcing any right or liability transferred to and vested in
the transferee by virtue of the Airports Act
1986 as he would have had if that right or
liability had at all times been a right or a liability of the transferee,
and any legal proceedings or applications to any authority pending on the
transfer date by or against the transferor, in so far as they relate to any
property, right, liability or function transferred to the transferee by virtue
of that Act, or to any agreement or enactment relating to any such property,
right or liability, shall be continued by or against the transferee to the
exclusion of the transferor.
9 
The provisions of paragraphs 6 to 8 shall have effect
for the interpretation of agreements, statutory provisions and other instruments
subject to the context, and shall not apply where the context otherwise requires.

10 

(1) Without prejudice to the provisions of paragraphs 6 to 9 of this Schedule,
any transaction effected between a transferor and a transferee in pursuance
of paragraph 1(5)
or of a direction under paragraph 1(7)
of this Schedule shall be binding on all other persons, and notwithstanding
that it would, apart from this sub-paragraph, have required the consent or
concurrence of any other person.
(2) It shall be the duty of the transferor
and transferee, if they effect any transaction in pursuance of the said 
paragraph 1(5) or a direction under the said 
paragraph 1(7), to notify any person who has
rights or liabilities which thereby become enforceable as to part by or against
the transferor and as to part by or against the transferee, and if such a
person applies to the Secretary of State and satisfies him that the transaction
operated unfairly against him the Secretary of State may give such directions
to the transferor and the transferee as appear to him appropriate for varying
the transaction.
(3) If in consequence of a transfer to which
this Schedule applies or of anything done in pursuance of the provisions of
this Schedule the rights or liabilities of any person other than the transferor
and the transferee or a wholly-owned subsidiary thereof which were enforceable
against or by the transferor become enforceable as to part against or by the
transferor and as to part against or by the transferee, and the value of any
property or interest of that person is thereby diminished, such compensation
as may be just shall be paid to that person by the transferor, the transferee
or both, and any dispute as to whether and if so how much compensation is
so payable, or as to the person to whom it shall be paid, shall be referred
to and determined by an arbitrator appointed by the Lord Chancellor or, where
the proceedings are to be held in Scotland, by an arbiter appointed by the
Lord President of the Court of Session.
(4) Where the transferor or the transferee
under a transfer to which this Schedule applies purports by any conveyance
or transfer to transfer to some person other than the transferor or the transferee
or a wholly-owned subsidiary thereof for consideration any land or any other
property which before the transfer date belonged to the transferor, or which
is an interest in property which before that date belonged to the transferor,
the conveyance or transfer shall be as effective as if both the transferor
and the transferee had been parties thereto and had thereby conveyed or transferred
all their interest in the property conveyed or transferred.
(5) If at any stage of any court proceedings
to which the transferor or transferee under a transfer to which this Schedule
applies and a person other than the transferor or the transferee or a wholly-owned
subsidiary thereof are parties, it appears to the court that the issues in
the proceedings depend on the identification or definition of any of the property,
rights or liabilities transferred which the transferor and the transferee
have not yet effected, or to raise a question of construction on the relevant
provisions of the Airports Act 1986
which would not arise if the transferor and the transferee constituted a single
person, the court may, if it thinks fit on the application of a party to the
proceedings other than such a body as aforesaid, hear and determine the proceedings
on the footing that such one of the transferor and the transferee as is a
party to the proceedings represents and is answerable for the other of them,
and that the transferor and the transferee constitute a single person, and
any judgment or order given by the courts, shall bind both the transferor
and the transferee accordingly.
(6) It shall be the duty of the transferor
and the transferee under any transfer to which this Schedule applies to keep
one another informed of any case where either of them may be prejudiced by 
sub-paragraphs (4) or (5)
of this paragraph, and if either the transferor or the transferee claims that
he has been so prejudiced and that the other of them ought to indemnify or
make a payment to him on that account and has unreasonably failed to meet
that claim, he may refer the matter to the Secretary of State for determination
by the Secretary of State.
11 
In this Schedule:
references to the transferor in relation to property, rights or
liabilities transferred by the scheme shall be construed as references to
the person in whom immediately before the transfer, the property, rights or
liabilities were vested; and
 “statutory provision”
 means any provision (whether of a general
or special nature) contained in or having effect under, any Act (whether public,
general or local).”
 means any provision (whether of a general
or special nature) contained in or having effect under, any Act (whether public,
general or local).
