HC Deb 14 June 1967 vol 748 cc555-8
27. Mr. McMaster

asked the President of the Board of Trade whether he has sought estimates of the growth of passenger traffic likely to be carried by British nationalised and independent airlines on the basis of their present plans; how this compares with the estimates of the total growth of world traffic; and whether he is satisfied with the percentage of world traffic likely to be obtained by British operators.

Mr. J. P. W. Mallalieu

Estimates I have obtained indicate that on present plans British airlines are expecting their traffic to grow at about the same rate as is forecast by the International Civil Aviation Organisation for growth of world traffic. This seems to me satisfac- tory and in keeping with recent experience, but I am sure that the airlines will seek as great a share of it as is commercially worthwhile.

Mr. McMaster

Is the Minister satisfied with the efficiency of the highly protected State air corporations? Will he give the independents a better crack of the whip so that the spur of competition can improve the efficiency of our entire aircraft industry for the benefit of the country as a whole?

Mr. Mallalieu

The question of licensing on routes is in the first instance for the Air Transport Licensing Board, but I must point out that other countries designate only one airline per route.

Sir A. V. Harvey

Why is the right hon. Gentleman so complacent about this matter? B.O.A.C.'s share of traffic on the North Atlantic route is steadily declining and the American share is increasing. The Americans have at least two passenger operators, and we have one. Is not there a case for another independent operator on the North Atlantic?

Mr. Mallalieu

I think that there is no case for another independent operator on that route. But I assure the hon. and gallant Gentleman that we are not complacent about this. I am as anxious as anybody else that our share should be continually increased, and our airlines have been doing well.

Mr. R. Carr

Then why does the hon. Gentleman think that our share of this vital North Atlantic route is falling?

An Hon. Member

Especially when we have good aircraft.

Mr. Mallalieu

That is a question that I cannot answer off the cuff. There is a number of factors to do with inclusive tour charters which are affecting scheduled aircraft.

Mr. Ronald Atkins

Would my hon. Friend agree that B.O.A.C. has already rescued one transatlantic operator that went bust, at great cost to the Corporation?

Mr. McMaster

On a point of order. In view of the unsatisfactory nature of the reply, I beg to give notice that I shall raise this matter at the earliest opportunity on the Adjournment.

32. Mr. Peter Mills

asked the President of the Board of Trade what are his estimates of the growth of freight traffic likely to be carried by British European Airways on the basis of their present plans; how this compares with the estimate of total growth of air freight traffic within Europe; and whether he is satisfied with the percentage of this traffic likely to be obtained by British European Airways.

Mr. J. P. W. Mallalieu

Rather over 20 per cent. per annum, which accords with the general expectation of the rate of growth in Europe as a whole. I expect B.E.A. to continue to be able to secure their full share of the traffic offered that is commercially worth while.

Mr. Mills

Is this enough? Are we not losing a lot of this trade to competitors such as K.L.M.? Surely B.E.A. should be encouraged to obtain a much larger share of the freight traffic.

Mr. Mallalieu

The record of B.E.A. in obtaining a share of the freight traffic in Europe is first-class. It is much the largest freight carrier.

33. Mr. Peter Mills

asked the President of the Board of Trade what are his estimates of the growth of passenger traffic likely to be carried by British European Airways on the basis of their present plans; how this compares with the estimate of total growth of air passenger traffic within Europe; and whether he is satisfied with the percentage of this traffic likely to be obtained by British European Airways.

Mr. J. P. W. Mallalieu

B.E.A.'s present plans are based on the expectation that their passenger traffic will increase by about 10 per cent. a year over the next five years. A similar rate of growth has been forecast for all intra-European international traffic. I expect B.E.A. to be able to secure a satisfactory share of commercially worth while traffic.

Mr. Mills

Again, is this really enough? Surely, to help maintain this passenger traffic, is it not more important that frequent services should be provided rather than a large airbus—indeed, feeder services from every area, particularly the South-West?

Mr. Mallalieu

These are certainly points to be borne in mind. But again I must assert that B.E.A. has done extremely well.

Mr. R. Carr

Would not the hon. Gentleman agree that the growth of British air transport is tied in closely with having a comprehensive plan for airport development for the whole country?

Mr. Mallalieu

That is one of the very important considerations.

49. Mr. Fortescue

asked the President of the Board of Trade whether he is aware that the United Kingdom's share of world scheduled air transport has steadily decreased since 1960; and whether he will take steps to counteract this trend by encouraging competition among British carriers and by improving the efficiency of the air transport licensing system.

Mr. J. P. W. Mallalieu

The United Kingdom's share has not in fact decreased since 1960 and the second part of the Question, therefore, does not arise. Possibly the hon. Member has in mind statistics which, for the earlier year, include traffic carried by airlines of countries for which the United Kingdom is no longer responsible. I will gladly send him the relevant information.

Mr. Fortescue

I thank the Minister for that answer. Would he not agree that the terms of reference enshrined in the legislation of the Air Transport Licensing Board mitigate against competition among British carriers and should not something be done about it?

Mr. Mallalieu

It is not merely the terms of the Board. On international practice we have to deal with foreign Governments.

Mr. Lubbock

Is the hon. Gentleman aware that, contrary to the assertion of the Chairman of B.O.A.C., our share of trans-Atlantic traffic has been declining? The figures are available in the United States, if not here.

Mr. Mallalieu

This is the subject of an earlier Question and is known. It is also the subject of Notice of an Adjournment debate.