(1)It shall be the duty of the CAA so to conduct its affairs as to secure that its revenue (including any grant towards revenue made to it in pursuance of section 12(1) below is not less than sufficient to meet charges properly chargeable to revenue account, taking one year with another.
(2)Subject to subsection (3) below, it shall be the duty of the CAA—
(a)in framing and carrying out proposals involving substantial outlay on capital account, and
(b)in framing and carrying out proposals involving the taking on hire of any equipment the purchase of which at the time of taking on hire would involve such an outlay,
to act on lines settled from time to time with the approval of the Secretary of State; and it shall also be the duty of the CAA to secure that any subsidiary of the CAA acts on those lines in framing and carrying out either description of proposals.
(3)Subsection (2)(b) above shall not apply to proposals by the CAA, or one of its subsidiaries, involving the taking on hire of equipment from a subsidiary or another of the subsidiaries of the CAA or from the CAA itself, as the case may be.
(4)The Secretary of State may, with the approval of the Treasury, give the CAA a direction as to any matter relating to the establishment or management of reserves or the carrying of sums to the credit of any reserves or the application of any reserves for the purposes of the CAA.