§ 2.47 p.m.
§ The Earl of KIMBERLEYMy 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 now make a statement on progress in negotiations with Member States of the European Community to reduce air fares and increase competition within the Community.
§ Lord TREFGARNEMy Lords, I have nothing to add to the Answer I gave to my noble friend Lord Lucas of Chilworth on 4th February last.
§ The Earl of KIMBERLEYMy Lords, while thanking my noble friend for that Answer, may I ask whether he would agree that it would appear that some airlines appear to subsidise their less profitable routes by overcharging on their high density routes? Secondly, can he give some examples of where Her Majesty's Government have achieved considerable success, as he said on 4th February?
§ Lord TREFGARNEMy Lords, it is certainly the case that airlines earn more revenue on some routes than on others, and I suppose therefore, following from that, one would say that some routes subsidise others. As a result of Government policy in this area we have, for example, been able to hold the economy fares to Scandinavia, apart from some modest fuel-related increases; we have introduced some very low-priced economy fares on those routes; discussions are taking place with the Greek and Italian Governments on the same matter; and we have unilaterally contained fare increases to those countries. As a result of pressure by the Government on the Spanish aeronautical authorities, new excursion fares have been introduced for some Spanish destinations.