London-Zurich Air Route: Pricing (Hansard, 5 December 1991)

§ The Minister of State, Department of Transport (Lord Brabazon of Tara)
My Lords, there is no provision under our bilateral arrangements with Switzerland to hold such an inquiry. We have approached the Swiss authorities to liberalise arrangements between us, but they are not prepared to move in advance of any agreements on a multilateral basis.

§ Lord Orr-Ewing
My Lords, is my noble friend aware that many of us who were trying to book early in October for a flight in January discovered that the price of the flight from London to Zurich had increased since last year from £112 return APEX to £179. Is that not a disproportionate rise? Lady Burton of Coventry, who sadly died in October, applied herself to this problem with great vigour and dedication in both Houses for 40 years. I hope that my noble friend will do as much to try to improve the matter. Fifty million people travel to Europe from this country every year. The situation will affect large numbers of people.

§ Lord Brabazon of Tara
My Lords, my noble friend is quite right about the part that the late Baroness Burton of Coventry played in trying to make some sense of our air fares. I can only agree with him.
As I said in my original Answer, we have been attempting to negotiate with the Swiss for more liberal arrangements. I wish my noble friend well in the inter-parliamentary ski races. If in the course of his visit to Switzerland he has the opportunity between ski races to make such points to his Swiss colleagues, that would be welcome.

§ Lord Shackleton
My Lords, I accept that there is an opportunity for individuals to contribute to the issue. However, the activity of my late friend Lady Burton was so valuable that I should have thought that the Government now realise that they have a responsibility in the matter. The noble Lord, Lord Orr-Ewing, has raised a matter of public interest to many people. Will the Minister consider making further approaches?

§ Lord Brabazon of Tara
My Lords, if I gave the impression that we were doing nothing, that was entirely wrong. We have approached the Swiss on several occasions to ask for more liberal arrangements which would allow for lower fares. On two separate occasions British Airways brought forward proposals to introduce low level promotional fares on the route from Switzerland. Sadly, they were vetoed by the Swiss.

§ Baroness Oppenheim-Barnes
My Lords, is my noble friend aware that it is not just a problem between Britain and Switzerland; it is a problem throughout Europe? We seem to have been negotiating for years with our "partners" in the EC. Will my noble friend say what role the commissioner with responsibility for competition in the EC plays in the matter?

§ Lord Brabazon of Tara
My Lords, we are still actively negotiating. Indeed, the third EC liberalisation package is now before the Council of Ministers. They have in principle agreed to it. We hope that by the end of next year it will be fully in place.

§ Lord Clinton-Davis
My Lords, is it right that the European Commission has concluded that out of 88 European fares that have come under their consideration, 40 are deemed to be excessive including 25 fares relating to British Airways flying out of 17 airports? Does the Minister believe that it is right for the Commission to seek to intervene in order to protect the interests of the consumers, or does he believe, along with British Airways, that the market place should be allowed to set its own prices"?

§ Lord Brabazon of Tara
My Lords, that is a different question. We are speaking of fares to Switzerland, which is not yet in the EC. Therefore, the role of the Commission does not come into play on that.

§ Lord Clinton-Davis
My Lords, with respect, other questioners have widened the issue quite properly to fares generally, as the Minister will have heard. Will the Minister indicate as a matter of principle whether he agrees with the conclusion reached by British Airways, that the market place should be allowed to set its own prices", or does he agree with the Commission on the matter?

§ Lord Brabazon of Tara
My Lords, it was our own Civil Aviation Authority which referred those prices to the Commission.

§ Lord Stanley of Alderley
My Lords, does my noble friend's first Answer also apply to regional airports, in particular Manchester?

§ Lord Brabazon of Tara
My Lords, if we manage to achieve more liberal arrangements, they will apply to all airports.

§ Lord Orr-Ewing
My Lords, I cited one example; I was not narrowing the issue. The whole of Western Europe is involved. A publication that I received today states: The airfares charged bear no relation to the market whatsoever with a cartel operating on each route. What can possibly justify such extravagant protectionism, which dictates that it costs more to fly between neighbouring European countries than it does to fly transatlantic?

§ Lord Brabazon of Tara
My Lords, my noble friend is right. That is why this Government have been at the forefront of promoting more liberal arrangements both within the EC and with other European countries and we shall continue to do so.