HL Deb 17 January 1991 vol 524 cc1249-50

Baroness Burton of Coventry asked Her Majesty's Government:

Whether they will list those civil aviation matters discussed at the meeting of the European Council of Transport Ministers held on 17th–18th December indicating agreements reached and action decided upon, with particular reference to proposals and progress relating to denied boarding compensation.

The Minister of State, Department of Transport (Lord Brabazon of Tara)

My Lords, the Council of Ministers, meeting on 17th December, agreed regulations on air cargo liberalisation and denied boarding compensation. It also discussed a proposal for a quick acting "cease and desist" mechanism in the event of predatory behaviour by airlines. The Commission reported to the council on progress in negotiations on air transport with Norway and Sweden.

Baroness Burton of Coventry

My Lords, I thank the Minister for that detailed reply, indicating real progress at last which he has helped to bring about. Perhaps he can help the House a little further. Can he say something about the mechanism proposed for swift action should the airlines themselves seem to take predatory action?

Lord Brabazon of Tara

The council discussed the Commission's proposal for a quick acting "cease and desist" mechanism to stop a predatory practice while it investigates it to a short timetable. There is still work to be done on the proposal but in any event formal agreement could not be reached since the European Parliament had not given its opinion. The Government regard this proposal as a vital safeguard in a liberal aviation market.

Lord Clinton-Davis

My Lords, is the Minister aware that the House will be extremely pleased at the progress that was made at the last ministerial transport council, notably in the field of aviation and most particularly in relation to denied boarding compensation? Is he further aware of the other side of that equation; namely, that "no-shows" occasion the airlines a considerable amount of potential loss, which in itself leads to overbooking? Do the Government have any plans whatsoever to deal with penalties arising from no-shows or do they believe that the present situation must continue to obtain?

Lord Brabazon of Tara

My Lords, that is an important point. I understand that the Commission considered the problem of overbooking but found it impractical to do anything that would not have reduced the ability of passengers to switch bookings; and fares would have been likely to increase. The regulation as adopted should encourage airlines to sort out the problem for themselves.

Baroness Burton of Coventry

My Lords, does the Minister agree that the real answer is that the airlines themselves do not wish to do anything about either no-shows or overbooking and give as the reason that if one did that and others did not they would lose most valuable custom?

Lord Brabazon of Tara

My Lords, that may well be the case. Therefore, we welcome the regulation that has been achieved. It will provide compensation levels ranging from £52.50 to £210, depending on the length of the journey and the delay. Of course, airlines are free to offer higher levels.

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