HL Deb 05 April 1978 vol 390 cc171-3

3.6 p.m.

Earl AMHERST

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 when they will decide which is to be the second point in the USA, in addition to New York, to which they can designate a second airline on dual designation.

Lord WALLACE of COSLANY

My Lords, my right honourable friend the Secretary of State for Trade stated on 23rd June 1977 that Her Majesty's Government had, for the time being, decided not to designate a second British airline on a city-pair market other than London-New York. At the moment that remains the position.

Earl AMHERST

My Lords, while thanking the noble Lord for that Answer, may I ask whether it is still Government policy at some time to designate a second point in the USA?

Lord WALLACE of COSLANY

My Lords, there is a decision to be reached by the Civil Aviation Authority. Perhaps if I give the situation the noble Earl will appreciate it. British Airways are already designated for Los Angeles, and they are licensed and operating there. British Caledonian were licensed by the Civil Aviation Authority some time ago but have not yet been redesignated under Bermuda 2. Laker have applied to the Authority for a licence for a Skytrain service and for the cancellation of British Caledonian's licence. There are no other contenders. But a difficult decision has to be reached by the Civil Aviation Authority, and, quite possibly there will be every chance of an appeal.

Lord BOY D-CA R PENTER

My Lords, does not the Bermuda Agreement, Mark 2, provide for dual designation on a second route to the United States apart from New York? In view of the fact that two reputable airlines have applied for the one vacancy on Los Angeles, is it not plainly evident, whatever the noble Lord may say now, that Los Angeles has to be the choice?

Lord WALLACE of COSLANY

My Lords, there will eventually have to be a choice made, and it may have to he a choice even between Boston and Los Angeles. The American airlines are in fact running dual services at the moment, but even they have problems to sort out as to who shall do what. We must understand that there is every possibility of an appeal over decisions reached by the Civil Aviation Authority, and the Government, quite rightly, must not make a decision until they know precisely what is the position and who will operate.