HL Deb 17 June 1971 vol 320 cc695-7

3.22 p.m.

BARONESS BURTON OF COVENTRY

My 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 they will make a statement concerning the one-day conference attended by representatives of the Department of Trade and Industry and British European Airways under the auspices of the European Civil Aviation Conference in Paris on June 2, and whether changes in the fares-fixing machinery were discussed.]

THE MINISTER WITHOUT PORTFOLIO (LORD DRUMALBYN)

My Lords, the purpose of this meeting with the airlines was to exchange views about traffic on the North Atlantic routes and the possibility of reducing fares. There was also some discussion of the International Air Transport Association's unanimity rule, but this was any incidental to the main topic of conversation. No conclusions were reached.

BARONESS BURTON OF COVENTRY

My Lords, while regretting that no conclusions were reached that is a little more information than usual. May I ask the Minister whether he is aware that the normal summer upsurge in scheduled airline traffic has not so far materialised this year? Is he further aware, and could he do anything to make B.E.A. aware also, that this upsurge is not likely to materialise unless some account is taken of the needs of the ordinary scheduled airline traveller, and some financial benefit offered to him, as well as to everyone else?

LORD DRUMALBYN

My Lords, I think I can reassure the noble Baroness to this extent: that there is a growing awareness of the need for scheduled services to be able to cater for the more popular demand, if I may so describe it, as well as for the normal scheduled travellers. This is a matter that will certainly be discussed at the IATA Conference on fares on the Atlantic routes which is to take place at the end of this month in Montreal.

BARONESS BURTON OF COVENTRY

My Lords, is the Minister aware that that is about the best answer I have had to date, except that which I got last week? May I ask him whether or not he would agree that lower fares would generate more traffic? Is there any reason why the ordinary scheduled airline traveller should suffer because of the over-capacity of our airlines?

LORD DRUMALBYN

My Lords, this is a question which depends largely on the unanimity rule in IATA, and it always has been a principle that there should be established fares for the scheduled lines, from which the concessionary fares derive. What I was saying was that side by side with that it should be possible to cater for capacity along the lines of the Earlybird fares.

LORD REIGATE

My Lords, can my noble friend say whether, if at the forthcoming IATA Conference some common sense is not introduced into the present IATA restrictive fare structure, they have any steps which they propose to take in conjunction with other Governments?

LORD DRUMALBYN

My Lords, my noble friend knows the way in which IATA functions. But I can say that the British representative at recent talks made it quite clear that, if IATA failed to introduce the right low fares, Governments would find it increasingly difficult to go on protecting the scheduled services against charter competition.

LORD BALFOUR OF INCHRYE

My Lords, would the noble Lord not agree that it is about time that the IATA unanimity rule was modified, in that it is a rule which allows inefficient operators to continue and prevents lower fares for those who wish to fly on scheduled lines?

LORD DRUMALBYN

My Lords, there is some pressure at the present time for modification of the unanimity rule in IATA.