§ 12. Mr. SteenTo ask the Secretary of State for Transport if he will take steps to improve competition among airlines operating (a) within the United Kingdom and (b) within Europe; and if he will make a statement.
§ Mr. MacGregorThe Government strongly support a liberal market in aviation. The United Kingdom led the way in developing a competitive domestic market and in the creation of the European Union single market and open skies in Europe policy. I hope that that will be extended to the full European Economic Area later this year.
§ Mr. SteenI congratulate the Secretary of State on taking on Air France and winning for British airlines in Orly. Will he now correct the balance for the few remaining scheduled British airlines so that they do not go the way of British Caledonian, Dan Air, Brymon, Birmingham Executive and British Island Airways, which have either gone to the wall or have been taken over by British Airways? Although British Airways has a successful track record, privatisation has given the company an over-dominant position in this country and Europe.
§ Mr. MacGregorIf the latter part of my hon. Friend's question refers to anti-competitive behaviour, the Office of Fair Trading has powers to investigate such allegations. I am grateful to him for his opening remarks. The outcome of the Commission's deliberations on the London to Paris, Orly air route was crucial because it was one of the first tests of the implementation of the single market. Another is that air fares are coming down. I am pleased about the Commission's response and grateful to my hon. Friend for recognising the part that I played in pressing for that. It will help other airlines and will be a great help to British Midland. My hon. Friend will have noted that, from next Monday, Air UK will operate six flights a day from Stansted to Orly.
§ Mr. Tony BanksIf the Secretary of State really wants to take on Air France, should not he do so in respect of its monopoly on flights to Strasbourg? The present position is clearly thoroughly unsatisfactory: the airline charges enormous fares because it knows that most people who go to Strasbourg will not be paying their own fares.
11 As for fares coming down, when can we expect to pay fares in Europe that are comparable with those in the United States?
§ Mr. MacGregorSome fares in the European Union are coming down as a result of the single aviation package. In fact, British airlines have led the way in bringing those fares down and others have had to follow suit. The important thing is to have competition on individual routes to ensure that that happens. We are pursuing that objective as well—which is why the question of the London to Orly route is important, as is that of flights from Orly to Toulouse and Marseilles. If the hon. Gentleman wishes to get in touch with me about Strasbourg, I will certainly ensure that it is examined; but I do not think that it has yet been drawn to the Commission's attention.