§ 3.16 p.m.
§ 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 they are in a position to make a statement on the outcome of the meeting of the International Air Transport Association (IATA) on 12th January concerning the introduction of cheaper fares on regular flights within Europe; and whether they will support the principle of cheaper fares in view of increasing consumer dissatisfaction with the structure of international air fares.
§ Lord WINTERBOTTOMMy Lords, this is a matter for the Civil Aviation Authority. The IATA meeting, which began on 12th January, was not concerned with intra-European fares. However, I understand that the fares proposed to apply within Europe from 1st April 1976 have yet to be agreed by all the IATA 1101 airlines concerned and have not yet, therefore, been submitted to the Civil Aviation Authority for approval. With reference to the last part of my noble friend's Question, the Authority informs me that it is working in consultation with British airlines on both the level and complexity of European fares. A satisfactory solution of these problems would, of course, require international agreement.
§ Baroness BURTON of COVENTRYMy Lords, is the Minister aware that as long ago as February 1971 I raised the question of the lack of cheaper air fares available to the public without strings on the major routes of scheduled airlines? Does my noble friend realise that air fares in Europe are higher than those elsewhere and that we still have a confusing variety of booking and short-stay conditions attached to European fares? May I ask my noble friend whether that could be looked at, too?
§ Lord WINTERBOTTOMMy Lords, I am certain that that is an important factor which will he considered when the moment comes. Obviously the simplification of these fares must be of advantage to everyone in the long run.
§ Baroness BURTON of COVENTRYMy Lords, may I raise another matter? Following what the Minister said about British Airways, and perhaps as a welcome change, may I ask if he is aware that British Airways' European Division has been a consistent advocate of a cheaper fares policy, that such simplification as we have had in the fares structure in Europe has been due largely to its efforts, and that I pay it that tribute for the work it has done?
§ Lord TREFGARNEMy Lords, is it possible to say whether the higher level of fares obtaining in Europe relates to the higher level of costs experienced by airlines operating on those routes? Is there any evidence to show that European airlines are earning excess profits on their European routes?
§ Lord WINTERBOTTOMMy Lords, as far as I know, several airlines are finding it difficult to earn profits.