§ 9. Mr. JenkinTo ask the Secretary of State for Transport what is his policy with regard to competition among United Kingdom airlines.
§ Mr. MacGregorThe Government's policy is to encourage free, fair and open competition among airlines to the benefit of both consumers and airlines.
§ Mr. JenkinWill my right hon. Friend accept my congratulations on the leading role that the Government have played in liberalising the airline industry throughout Europe? Is that not already shown in the recent reductions in prices on European routes? May we now look forward to greater freedom for airlines throughout Europe?
§ Mr. MacGregorI am grateful to my hon. Friend, who is absolutely right. I do not think that the significance of the third aviation package in the European Community has yet been fully appreciated in opening up competition and liberalising the skies across Europe. Indeed, its effects are already being felt earlier than many people predicted. I am glad to say that, as the British Government were in the forefront of arguing for the changes and getting them, British airlines are in the forefront of taking advantage of them.
Since the new package came in on 1 January, British Midland has launched its Diamond Euroclass cabin in a new package offering savings of up to 40 per cent. compared with other airlines on seven routes in the Community and just outside it. Since then, other airlines, including British Airways, Aer Lingus, KLM and Air France, have followed suit and brought down their fares. That is a clear example of our new competition package operating to the benefit of consumers.