HC Deb 12 March 1990 vol 169 cc10-1
10. Mr. Tim Smith

To ask the Secretary of State for Transport what steps his Department is taking to bring down air fares in Europe.

Mr. McLoughlin

The Government are committed to removing the barriers to competition in air transport by liberalisation within the Community and bilaterally. This should lead to lower fares and increased consumer choice.

Mr. Smith

What progress is being made? Does my hon. Friend agree that it is still cheaper to fly to New York than to many European destinations? Does he agree that if liberalisation of air transport is to be meaningful for air passengers it must be carried out in such a way as to ensure that there is real competition and that small airlines can survive?

Mr. McLoughlin

I entirely agree with my hon. Friend about competition policy. It is vital that we ensure that there is room for all the smaller companies. Liberalisation will give those companies greater opportunities to take advantage of the market.

Mr. Alfred Morris

Is it not monstrous that there should be such huge fare differences from Manchester and the London airports to other European cities approximately the same distance away? Does the Minister agree that this hurts the interests of Manchester airport, discrimin- ates against northern passengers and chokes the skies over south-east England even more dangerously? What action are the Government taking?

Mr. McLoughlin

A number of factors lead a person to decide where he should start his journey from. It is Government policy to encourage regional airports to take as much advantage as possible of a liberalised aviation market, and it is with that in prospect that we are trying to bring about a more liberal agreement between the Community and other areas. The Government certainly intend to see regional airports develop.