§ 20. Mr. Shepherdasked the Minister of Aviation what percentage of the receipts of British European Airways and British Overseas Airways Corporation, respectively, arising from scheduled international passenger services are derived from flights covered by pooling arrangements which virtually eliminate competition.
§ Mr. Roy JenkinsIn the financial year 1964 to 1965 77 per cent. of the revenue of B.E.A. and 61 per cent. of B.O.A.C. came from routes covered by pooling arrangements. I cannot accept the implication in the Question that such pooling eliminates competition.
§ Mr. ShepherdIs not the Minister aware that these figures, together with the fare rigging of I.A.T.A. and the bilateral arrangements, mean that effective competition in air travel has virtually ceased to exist? Does he not realise that until this is broken there is little or no hope of people flying at lower fares?
§ Mr. JenkinsNo. I do not agree that all competition is reduced. Indeed, within the B.E.A.—Air France pool on the London-Paris route there have been considerable variations in the past few years in the percentage of traffic carried by each carrier. At the same time, I have previously informed the House, and I do so again, that I have some concern about the level of certain rates on high-density European routes, and I hope that we might begin to make progress in a lower direction.