§ 5. Mr. Neubertasked the Secretary of State for Trade what steps he is taking to encourage greater competition in air transport services to Australia.
§ Mr. EyreThe Civil Aviation Authority recently rejected applications by British Caledonian Airways and Laker Airways to operate between the United Kingdom and Australia, but indicated that it would look sympathetically at an application for a new service on this route in which British and Australian interests would participate jointly. Since the CAA decision is the subject of an appeal to my right hon. Friend, I cannot comment on it.
§ Mr. NeubertI hope that my hon. Friend will not think me unappreciative of his efforts if I say that the present arrangements which buttress and protect the interests of two high-cost, high-fare operators—British Airways and Quantas—are by no means good enough. Will he continue to press the Australian Government to allow the Lakers and British Caledonians of this world loose on this route for the benefit of the British travelling public?
§ Mr. EyreOn the specific point, my hon. Friend will know that I cannot say more because of the appeal. But, being an avid supporter of lower fares whenever they are economically justified, I should like the House to know that the British, Australian and South-Eastern Asian Governments have recently agreed on a new fares package for the route which is being introduced from today. This new fares package should, therefore, have considerable interest for travellers to and from Australia.
§ Mr. McCrindleI welcome any opportunity to enable people to fly more cheaply to and from Australia. Does the Minister accept that if the revenue of British Airways is to be diluted on one of their principal routes, that may not necessarily be in the best interests of Government policy in disposing of 49 per cent. of the share capital of British Airways?
§ Mr. EyreMy hon. Friend must have regard to the fact that consumers are entitled to lower fares whenever these are economically justified.