§ Lord Clinton-Davisasked Her Majesty's Government:
What is their reaction to the plans announced by the Commission of the European Communities to open up airport services such as baggage handling to greater competition in the light of a substantial number of recent complaints concerning restrictive practices in the provision of airport service; and whether any such complaints have originated in the UK, and if so, whether they will identify them.
§ The Parliamentary Under-Secretary of State, Department of Transport (Lord Mackay of Ardbrecknish)The Government welcome the Commission's recent consultation paper as an initial step towards the objective of greater competition in the market for ground handling services. We favour starting from the principle that all services should be subject to competition and that where complete liberalisation is not possible then partial liberalisation should create opportunities for a minimum number of suppliers and guarantee their independence of the airport and the dominant airlines. There is a need to ensure that procedures for authorising any exemptions are transparent and accountable.
A number of complaints regarding restrictive practices at Community airports have been made by UK airlines. In all cases these have been made in conjunction with other carriers. Complaints by UK airlines currently under investigation by the Commission are:
British Midland's allegation of discriminatory behaviour by the German Airports Authority to allow Scandinavian Airlines Systems to handle BM's flights at Frankfurt Airport;
British Airways' complaint against the exclusive right granted by Iberia to AENA to provide handling services at Spanish airports;
a similar complaint by British Airways regarding monopoly ground handling at Frankfurt Airport;
a similar complaint by British Airways against the exclusive right granted by the Greek Civil Aviation Authority to Olympic Airways for ground handling services. Imposition of excessive prices are also alleged.
In addition, Ogden Aviation Service, a UK ground handling company, has complained of discriminatory practices aimed at preventing them from providing services at German airports.
The Government's response to the Commission's consultation paper stressed that all these complaints should continue to be pursued vigorously while the 18WA Commission considers new legislation. I am placing a copy of the Government's response to the Commission in the Library.