HC Deb 20 July 1933 vol 46 cc152-4W
Mr. Teddy Taylor

asked the Secretary of State for Transport (1) if he will make a statement on the latest consideration by the Government of measures to liberalise scheduled airline services in the United Kingdom; and when he expects further measures to be announced;

(2) if he will ensure that in any further consideration of moves to liberalise domestic scheduled air services, those representing the views of passenger and consumer organisations will be given specific opportunities to put their views to the Government;

(3) what consideration he is giving to proposals that the Civil Aviation Authority should no longer have powers to refuse domestic scheduled air route licences, except on grounds of safety and to proposals that the Civil Aviation Authority should be removed from its role in setting or indicating suitable air fares for scheduled domestic air services;

(4) what action the Civil Aviation Authority is now taking at his invitation to ask airlines and other bodies and individuals connected with the airline industry for their views on further liberalisation of domestic scheduled airline services.

Mr. David Mitchell

The possibility of liberalising controls on domestic scheduled air services was discussed between my right hon. Friend's predecessor and the Civil Aviation Authority. My right hon. Friend and I are now considering the outcome of that discussion. Under the Civil Aviation Act 1982 responsibility for air transport licensing lies with the Civil Aviation Authority which must consult representatives of the civil air transport industry and users of air transport services before issuing a statement of policy. My right hon. Friend has no plans at present to remove from the authority the power to refuse air transport licences or to control fares.

Mr. Teddy Taylor

asked the Secretary of State for Transport if he will make a statement about the progress towards a more liberal European Commission interregional air services directive; and what part Her Majesty's Government have played in any such agreement.

Mr. David Mitchell

We proposed action on these services in 1979 and have continued to play an active part in the subsequent negotiations at all levels. I am very glad, therefore, that all states have now confirmed their agreement to the text of a directive and I hope that the Council of Ministers will adopt it shortly.

Mr. Teddy Taylor

asked the Secretary of State for Transport if he will make a statement about the progress being made on the European Commission air fares directive; and what the key issues of disagreement between European Commission countries currently are on this issue.

Mr. David Mitchell

Very little progress has been made because the Council does not devote much time to discussing it. Disagreement centres on whether airlines should continue to require the approval of governments at both ends of each route before introducing new fares. Her Majesty's Government believe that greater commercial freedom within appropriate guidelines would benefit airline passengers, but the majority of member states continue to prefer the present arrangements which enable them to protect their airlines from unwelcome competition.

Mr. Teddy Taylor

asked the Secretary of State for Transport if he will set out the circumstances under which an airline registered as a British company but whose majority beneficial ownership is not British but is held by a European Commission company or individuals, is entitled to be considered on a completely equal footing to a British airline company wholly, or 33, majority British owned, as far as eligibility for providing services on United Kingdom scheduled or charter or freight domestic air routes is concerned, or as far as is concerned the right to fly routes originating from the United Kingdom to other parts of the European Commission under the latest draft European Commission agreement on inter-regional air services.

Mr. David Mitchell

The circumstances are set out in sections 64 and 65 of the Civil Aviation Act 1982. They will not be affected by the European Community regional air services directive.

Mr. Teddy Taylor

asked the Secretary of State for Transport what latest consideration he has given as to whether the general philosophies set out in the Treaty of Rome on the subject of open trade and open competition between European Community members apply to air transport; what are the main themes in such latest consideration; and if he will make a statement.

Mr. David Mitchell

In his letter of 8 October 1981 to the European Commission, my right hon. Friend the then Secretary of State for Trade accepted that the decisions of the European Court pointed to the conclusion that the general articles of the treaty, and in particular articles 85 and 86, apply to air transport. That remains Her Majesty's Government's view.

Mr. Teddy Taylor

asked the Secretary of State for Transport if he will list all those airlines which are registered British companies but whose beneficial ownership lies abroad, giving the country where, to his best knowledge, such beneficial ownership lies; and on what principle such airlines are accepted as being eligible for being considered British for purposes either of flying charter or freight or domestic scheduled air services, or for flying similar routes abroad originating in the United Kingdom, as a British airline for the purpose of international air agreements.

Mr. David Mitchell

Section 65 of the Civil Aviation Act requires the Civil Aviation Authority to obtain the consent of my right hon. Friend before an air transport licence may be granted to an applicant who is neither a United Kingdom national nor a suitably: incorporated body controlled by United Kingdom nationals. Consent has been given only in the case of Britannia Airways Ltd., whose ultimate ownership lies in Canada. There are no statutory criteria for deciding whether to give or refuse consent to the granting of licences to airlines not controlled by United Kingdom nationals and applications must be decided on their individual merits.

Mr. Teddy Taylor

asked the Secretary of State for Transport if he will give the number of times in each of the last five years when British Airways has been involved in an application for a domestic scheduled air route licence, either as the party wanting the route for itself, or as a party objecting to another airline which has applied for the route, getting the route; and on how many occasions the Civil Aviation Authority has come down on the side of the arguments regarding the route application put forward by British Airways.

Mr. David Mitchell

This is a matter for the Civil Aviation Authority which is responsible for the licensing of domestic scheduled air services. I am asking the chairman of the authority for the information requested and will write to my hon. Friend as soon as the information reaches me.