The Airports Act 1986 required every municipal airport with a turnover greater than £1M to be turned into a public limited company. On 1 April 1987, Bristol City Council transferred the operation and net assets of the airport to Bristol Airport plc. The council retained full ownership of the company. However, under the terms of the Act, as long as the local authority retained a majority shareholding there were restrictions on the ability of the company to raise finance for capital projects.