The Plowden Committee has been considering ”… the future place and organisation of the Aircraft Industry in relation to the general economy of the country taking into account the demands of national defence, export prospects, the comparable industries of other countries, and the relationship of the Industry with Government activities in the aviation field.” Against this background of inquiry into the future structure of the Industry, it seems opportune to consider in some detail the actual process of mergers and reorganisation which occurred in the Aircraft Industry during the period 1957-60. This paper will attempt to explain the reasons for the mergers, the development of Government policy towards the Industry during this period, and the actual process of events which produced the recent industrial structure.