§ Lord AVEBURYasked Her Majesty's Government:
What stage has been reached in the negotiations between the United Kingdom and the Governments of Denmark, Norway and Sweden about air services between the United Kingdom and Scandinavia; and why the DOT has directed the CAA to re-hear applications by British Caledonian Airways Ltd to operate services between London (Gatwick) and Oslo, Copenhagen, Stockholm and Gothenburg despite the fact that this had already been approved; and on what other occasions the power to direct the CAA to re-hear applications for licences already awarded has been exercised.
§ Baroness STEDMANUseful progress has been made in closing the gap between the initial positions of both sides and a further round of discussions is planned to begin on 14th November.
The CAA's decision to grant the applications by British Caledonian Airways Limited was the subject of an appeal by British Airways to the Secretary of State for Trade. After the Authority had made its decisions, a new situation arose as a result of the denunciation by the Governments of Denmark, Norway and Sweden of their air services agreements with the United Kingdom. The Secretary of State decided to direct the Authority to re-hear the applications because it was impossible to foresee in the new situation what routes the United Kingdom would be able to secure for its airlines under any new agreement or under what circumstances they might be operated. It is appropriate, therefore, that in due course the CAA should reconsider its decision in the light of the outcome. The only other occasion on which the Secretary of State directed the Authority to re-hear applications for licences was in May 1975 when, following an appeal, the authority was directed to re-hear applications by Dan Air Services 704WA Limited and British Island Airways Limited involving routes to the Isle of Man from Gatwick and Liverpool.