§ Mr. Les Huckfieldasked the Secretary of State for Trade if, in view of the serious situation of United Kingdom airlines, he will freeze existing air service licences for a period of two years with a view to enabling carriers to plan ahead and, in consultation with the Civil Aviation Authority, to introduce realistic fares.
§ Mr. EyreNo. In the first instance the licensing of air transport services is a matter for the Civil Aviation Authority.
§ Mr. Les Huckfieldasked the Secretary of State for Trade if, taking into account the need to protect the industry and to ensure the long-term interests of both the travelling public and the taxpayer, he will set out guidelines for air services licensing.
§ Mr. EyreThe setting of guidelines for air services licensing is a matter for the Civil Aviation Authority. Under section 13 of the Civil Aviation Act 1980 it is the duty of the authority to publish from time to time a statement of the policies it intends to adopt. The first statement has to be published not later than six months after that section comes into operation and I am informed that work on its preparation is well under way.
§ Mr. Les Huckfieldasked the Secretary of State for Trade what is the policy of Her Majesty's Government towards the introduction of new capacity to air services; and what account is taken of the considerable losses being sustained by existing carriers.
§ Mr. EyreThe criteria are set out in the Civil Aviation Act 1971, as amended by the Civil Aviation Act 1980. Section 3(1 )(a) of the former refers to
an economic return to efficient operators on the sums invested in providing the servicesand tothe sound development of the civil air transport industry of the United Kingdom.