HC Deb 19 June 1978 vol 952 cc7-9
4. Mr. Neubert

asked the Secretary of State for Trade when he expects next to meet the chairman of British Airways.

Mr. Dell

I shall be meeting the chairman this week.

Mr. Neubert

Will the right hon. Gentleman pledge his active support to British Airways' commendable proposals to reform IATA, increase competition and give greater emphasis to lower fares? As IATA is a creature of Governments, delegated to do their dirty work for them, does the right hon. Gentleman recognise that the British Government can encourage cheap fares more easily than by giving a knighthood to Freddie Laker, well deserved and welcome though that is?

Mr. Dell

I agree that there are ways other than that of reducing air fares. We wish to see lower fares in operation on international as well as domestic routes. This has to be consistent with the economics of airline operation and safety, but we have given every encouragement to the process and I have made statements in the House to that effect. We therefore welcome the initiative of British Airways.

Mr. Donald Stewart

When the Secretary of State meets the chairman of British Airways, will he inform him that, although external fare reductions are very welcome indeed, he should give some attention to reducing internal fares, particularly those between Scotland and the Scottish islands, which are still escalating, with increases almost twice a year, as a result of which the routes have priced themselves out of the market?

Mr. Dell

I am certainly prepared to to tell the chairman that the right hon. Gentleman made that point to me. The chairman may respond by drawing attention to the losses that British Airways makes on certain routes. Nevertheless, I am prepared to mention the fact.

Mr. Hugh Jenkins

When my right hon. Friend meets the chairman, will he discuss with him the possibility of reducing the number of landings at Heathrow and increasing the number at Stansted and Gatwick? Has my right hon. Friend the power to issue a direction to that effect?

Mr. Dell

I have powers to move airline operations to Gatwick, but I prefer to use persuasion. British Airways is cooperating in that respect. If my hon. Friend reads the White Paper, he will see that we have put a limitation on the growth of Heathrow and that we wish to see an expansion at Gatwick.

Mr. Adley

Did the Secretary of State approve the agreement between the chairmen of British Airways, Rolls-Royce and British Aerospace not to indulge in any overt public lobbying while the Government are making up their mind on the question of the purchase of aircraft for British Airways? Does he think that the chairman and senior executives of British Airways have kept their part of the bargain?

Mr. Dell

I think that if one inquired too meticulously into the adherence of these various gentlemen to the bargain to which the hon. Gentleman has referred one might not be satisfied with any part of the answer. I encourage all those concerned to keep the temperature low in this very difficult decision.

Mr. Terry Walker

Will my right hon. Friend go a little further than what the hon. Member for Christchurch and Lymington (Mr. Adley) suggested and urge the chairman of British Airways to buy British and not consider again buying American aircraft at this stage?

Mr. Dell

There are questions here of benefit to the United Kingdom economy and of benefit to British Airways—and, indeed, there are questions relating to the future of the British aircraft industry. The Government have seriously to consider them, and we will make an announcement in due course.