§ BARONESS BURTON OF COVENTRYMy Lords, I beg leave to ask the Question which stands in my name on the Order Paper.
[The Question was as follows:
To ask Her Majesty's Government whether at the IATA conference beginning in Miami in September next they will be prepared to support a move for the introduction of lower fares in Europe.]
EARL FERRERSMy Lords, while Her Majesty's Government are not, of course, represented at IATA conferences, they will support, and indeed encourage, any reasonable proposal for reducing air fares, whether in Europe or elsewhere. It is only fair to say, however, that sharply increasing operating costs make it unlikely that the average level of air fares in Europe could be significantly reduced at this time.
§ BARONESS BURTON OF COVENTRYMy Lords, while being glad of the somewhat more favourable response in the first part of the noble Lord's reply, may I ask him whether he remembers that his noble friend Lord Drumalbyn told me on March 10 (it appears at column 58 of the OFFICIAL REPORT) that while the Secretary of State cannot make recommendations to the International Air Transport Association he can and does make recommendations to the British airlines which are members of it. Arising out of that may I ask the noble Earl—and I have no information on this point—if B.E.A. are not proposing to put forward at the IATA conference in September a proposal for cheaper fares in Europe, will Her Majesty's Government make recommendations to them that they should do so?
EARL FERRERSMy Lords, Her Majesty's Government are in contact with B.E.A. and Caledonian/B.U.A. over the structure of air fares. Of course it is a matter for B.E.A. and the other airlines concerned to run their businesses in the most appropriate way, but where there are genuine occasions for reductions in air fares Her Majesty's Government are concerned that these should come about. I would add that the only way in which they can reasonably come about is by seeing that the aircraft concerned are filled to capacity, and this can be achieved both by the regular fares and the cheaper fares.
§ BARONESS BURTON OF COVENTRYMy Lords, I do not know why the Government cannot give a short answer to a question instead of going all round the bush. Is the noble Earl aware that it is the over-capacity of the airlines which has prevented them from being full? Is he further aware that charter flights have proved that if the fares are right the traffic will emerge? Does he deny the validity of the fact that if the scheduled fares are right the scheduled traffic will rise, and can he please give a little more positive answer?
EARL FERRERSMy Lords, I think the noble Baroness is entirely right in her facts, but it is because the airlines may be over-subscribed with seats that it is necessary for the airlines to have cheaper fares in order to ensure that the capacity is taken up.
§ BARONESS BURTON OF COVENTRYMy Lords. I take it from that remark that the noble Earl has made my case. Will he assist the airlines to have the cheaper seats taken up by supporting a proposal in September that cheaper fares shall be introduced in Europe?
EARL FERRERSMy Lords, the noble Baroness seems to have forgotten that there are cheap fares to Europe which are cheaper than the standard fare, and the reason why they are cheaper is because the standard fare has certain advantages which are not applicable to the cheaper seats.
§ BARONESS BURTON OF COVENTRYMy Lords, I do not usually give up, but I am afraid that I do to-day.