Britain emerged from the Second World War with a huge aviation industry dedicated primarily to military production. During the war, in agreement with the USA, Britain used US transport aircraft, thereby giving the USA a huge potential advantage in post-war civil aviation. Nevertheless, during the war Britain charted a course of aircraft development that would allow new, competitive civil aircraft to be in place by 1950. Under the Labour government of 1945–51, Britain imposed a “Fly British” policy to encourage production of civil aircraft and required the national airlines to buy British aircraft. However, American competition, the demands of rearmament and the tightly controlled ordering process for civil and military aircraft made the production of British civil aircraft costly and uncompetitive. Faced with changing technology, rising costs and the development of US jet aircraft, the British aviation industry was forced into a radical consolidation by the Macmillan government.