§ 3.10 p.m.
§ Lord MERRIVALEMy 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 gave consideration to the possibility that British Airways, Cathay Pacific and in particular British Caledonian could cater for the needs of "the forgotten men and women at the bottom end of the market" before announcing the licensing of four operators for air services between London and Hong Kong, and if so, what consideration was given to the probability of shortage of hotel space in Hong Kong and the saturation of Kai Tak Airport.
§ Lord TREFGARNEMy Lords, my right honourable friend the Secretary of State for Trade, in considering the appeals, 512 took into account the information put in evidence. This included evidence on passenger forecasts and on hotel accommodation and airport capacity. On the basis of all the evidence he decided that all four carriers should be licensed.
§ Lord MERRIVALEMy Lords, may I thank my noble friend for that Answer? Is he aware that last week British Airways introduced a new package for Hong Kong? Would he not agree that with British Airways, British Caledonian and no doubt Cathay Pacific providing a fare of £99, that will cater for those people at the lowest income? Furthermore, am I right in assuming that the date of application to the Hong Kong Air Transport Licensing Authority was filed by Laker on 23rd June last and that it was sup-ported by the Hong Kong Government? If it was supported by the Hong Kong Government, will my noble friend say whether Her Majesty's Government have given to the Hong Kong Air Transport Licensing Authority via the Hong Kong Government any economic information which will assist them to approve or disapprove the application?
§ Lord TREFGARNEMy Lords, the Hong Kong licensing authority is a completely independent body and the matter is therefore solely one for them, although when the original decision on the appeal was announced by my right honourable friend he expressed the hope that they would treat Laker's application favourably.
§ Baroness BURTON of COVENTRYMy Lords, while being glad that the noble Lord, Lord Merrivale, has called attention to the bottom end of the market, would the Minister agree that the recent offer by British Airways (which they have called a "fire cracker" scheme) is likely to bring advantage to air travellers at the bottom end of the market, as it is the lowest on offer? May I ask him, furthermore, in congratulating British Airways on that scheme, whether he is aware that they say that this scheme guarantees a ticket? Does it also guarantee a seat?
§ Lord TREFGARNEMy Lords, that, I suspect, rather depends upon the number of passengers offering, I do not suppose that we have heard the last of this matter in terms of low fare offers. 513 I can well imagine the other air lines following suit in due course.
§ Lord SEGALMy Lords, in view of the enormous congestion at Kai Tak airport, will the noble Lord say what progress is being made with the construction of a second airport for Hong Kong, and when the second airport is likely to be completed?
§ Lord TREFGARNEMy Lords, I have no information on that matter, I am afraid. We think that the proposals are not likely to stretch unduly the capacity of Hong Kong airport, although I confess that it is fairly busy at present. Even if all the carriers operate at full frequency as forecast, it is likely to be only some 22 movements a week.
§ Lord PONSONBY of SHULBREDEMy Lords, surely the Hong Kong licensing authority will have to take into account the capacity of the airport, before coming to a decision themselves whether to licence a fourth carrier to enable that additional service to operate?
§ Lord TREFGARNEMy Lords, I am quite sure that the Hong Kong licensing authority will want to consider all the factors, but I cannot think that they would want to exclude Laker simply on the grounds of the capacity at Hong Kong airport.
§ Lord MERRIVALEMy Lords, would not my noble friend agree that if there is extensive competition—in other words, increasing free-for-all—with a continuing fight for reducing air fares, British airlines may find themselves in a position in the future in which some American airlines find themselves at the moment?
§ Lord TREFGARNEMy Lords, if my noble friend is referring to the Hong Kong to London route, there is no question of American airlines operating on that route.