§ Mr. Warrenasked the Secretary of State for Trade what consideration he has given to the effects of excessive discounts by foreign airlines of air fares on the financial viability of United Kingdom airlines where the foreign airlines are operating in direct competition with United Kingdom carriers on routes to and from the United Kingdom approved by Her Majesty's Government; and if he will hold consultations with the Civil Aviation Authority on this matter.
§ Mr. SproatAirlines' proposals for fares have to be approved by Governments. The discounting of air fares below the approved levels is a widespread phenomenon, particularly on routes to the Far East and to Europe; it is not a common practice on routes to North America, where the fares structure makes it unnecessary. My Department is, of course, in regular contact with the CAA concerning the problem and I am satisfied that such discounting is not in itself a crucial factor affecting the overall financial position of United Kingdom airlines.