§ 2.55 p.m.
§ BARONESS BURTON OF COVENTRYMy Lords, I beg leave to ask the first Question which stands in my name on the Order Paper.
§ [The Question was as follows:
§ To ask Her Majesty's Government whether, through the International Air Transport Association (IATA), they will recommend some reduction in standard fares on scheduled air services to Europe so that private and business travellers may benefit in common with those travelling through tour operators.]
§ THE MINISTER WITHOUT PORTFOLIO (LORD DRUMALBYN)My Lords, the Secretary of State cannot make recommendations to the International Air Transport Association, but he can and does make recommendations to the British airlines which are members of it. He is very conscious, however, that the airlines which provide scheduled services to Europe, like those serving other parts of the world, are currently facing higher costs and sharply declining profits. Some lower rates are being introduced so as to attract new kinds of traffic which will improve profitability, but there would be no sense in reducing the fares paid by existing traffic where this would lead to a further reduction of profits or to greater losses.
§ BARONESS BURTON OF COVENTRYMy Lords, as I was correct last Thursday concerning flights to Spain and Portugal, and that tour operators would be able to reserve up to 50 per cent. of the seats on scheduled flights as from April I, would the Minister say whether seat rates have been agreed and, if so, what they are?
§ LORD DRUMALBYNMy Lords, the seat rates have been agreed, but it would not be normal practice to state what the rates are, because of course these are not the rates at which the inclusive tour is offered to the public.
§ BARONESS BURTON OF COVENTRYMy Lords, may I ask the Minister whether it is correct that these facilities for tour travel passengers will be available all the year round from April 1, with a validity of 6 to 30 days? Does he not consider that private and business travellers should have some benefit, too?
§ LORD DRUMALBYNMy Lords, I think the noble Baroness is quite right in the first part of the question, although the actual rates will vary with different parts of the year. As to the second part of the question, of course this is a means of filling empty places on flights which are not filled to capacity.