§ 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 now in a position to make a Statement upon the result of the discussions between the Civil Aviation Authority and British airlines concerning the application of the overbooking compensation scheme to return flights resulting from an original booking made in the United Kingdom on British airlines so that a passenger may be covered for the whole of his ticket and not, as at present, for half of it.
Lord ORAMMy Lords, as I told my noble friend in answer to a similar Question on 16th November, the Civil Aviation Authority is seeking ways of extending the scheme to all passengers on United Kingdom and foreign airlines on inward flights, irrespective of where they bought their tickets. Since then the International Air Transport Association has voted on a draft resolution which provided that, where two countries agreed, their respective airlines could make arrangements for the payment of compensation for flights in either direction between those two countries. Unhappily I understand that the resolution was lost because of a substantial number of negative votes.
§ Baroness BURTON of COVENTRYMy Lords, does the Minister also recall telling me on 16th November that there were many people in important places who agreed with me, and that the question 622 was to find the best route and decide the best speed at which progress could be made? In view of what he said, is it not obvious that the route is blocked and that progress is nil? Could he consider this suggestion? Does he agree that the best hope of getting such an extension lies in flights from Europe to the United Kingdom? And as British Airways has expressed itself in agreement to such an extension, could the airline not be asked to make bilateral arrangements with various countries?
Lord ORAMMy Lords, I remember saying what my noble friend recalls. As a result of the representations that she has made, the activity that I have indicated has taken place in IATA since our exchange in November. I agree with her that the negative result of those approaches means that we have come rather to a full-stop in the IATA connection and that therefore we should think afresh. I have noted what she said about a possible new move, and I shall certainly convey that to my right honourable friend the Secretary of State for Trade to see whether there is any initiative which he would be willing to take.
§ Baroness BURTON of COVENTRYMy Lords, I thank my noble friend for that answer. Does he recall that over the matter of the small agencies, when IATA took action, it was possible through procedures in this House to stop IATA behaving in that way? Is it really necessary that British Airways, wishing to take such action, should entirely accept what IATA rules? Can they not protest?
Lord ORAMMy Lords, my noble friend rightly recalls a precedent in relation to IATA rules. Nevertheless, it is important that our airlines should remain within that organisation. We would not want that precedent to be followed too frequently. Nevertheless, I note my noble friend's various suggestions.
§ Lord TREFGARNEMy Lords, would the noble Lord not agree that over-booking—a discouragement to airlines—although admirable in every way, to some extent at least increases airlines' costs? Is that sort of pressure appropriate at a time when many organisations, including the committee on which the noble 623 Baroness serves so gallantly, are pressurising for lower fares, particularly in Europe?
Lord ORAMMy Lords, it is recognised that there is an economic necessity for overbooking, but my noble friend is trying to pursue ways of diminishing the adverse effect of that process.
§ Baroness BURTON of COVENTRYMy Lords, is my noble friend aware that the noble Lord, Lord Trefgarne, has his points mixed? Is he also aware that I am not referring to the recent fares seminar but to the common sense suggestion that if compensation is paid for being overbooked on an airline, it should apply to the whole of a ticket and not to half of it?
Lord ORAMMy Lords, that question seems to be directed to the noble Lord, Lord Trefgarne, rather than to me.
§ Lord SEGALMy Lords, is my noble friend aware that sometimes the telephone bell will ring over 50 times when one calls British Airways before anyone troubles to lift the receiver? Would not the degree of overbooking be very much heavier if the telephones were answered more promptly?