Airlines (Change of Gauge Facilities)

HC Deb 30 April 1986 vol 96 cc403-4W

Mr. Carter-Jones

asked the Secretary of State for Transport (1) if he will give a list of the airlines allowed to use change of gauge facilities in the United Kingdom; if he will estimate the size of such activities; and if he will make a statement;

(2) what information he has as to facilities available in the United States or any other countries for British airlines to operate change of gauge facilities; and if he will make a statement;

(3) what is his policy regarding change of gauge facilities for foreign airlines bringing passengers into the United Kingdom and then taking them on in their own aricraft to other destinations; and if he will make a statement.

Mr. Michael Spicer

Thirty-eight of our bilateral air services agreements contain a reciprocal change of gauge provision. In practice, these rights are little used nowadays by either British or foreign airlines. However, for United States airlines with more than one route to the United Kingdom these rights are valuable when used in conjunction with combination rights beyond the United Kingdom to other European cities. Pan Am, for example, uses both change of gauge and combination rights to operate a hub and spoke system at Heathrow. Although change of gauge rights are available for British airlines in the United States, these rights are not of comparable value. British airlines may operate only to a limited number of United States gateway cities where they inevitably compete with United States airlines operating non-stop services to the United Kingdom. There is therefore little opportunity or commercial benefit for a British airline to mount its own hubbing operations within the United States. This is one reason among others why the Government are negotiating with the United States Government for a better balance of rights and opportunities, the need for which has become apparent. The Government's policy in general towards change of gauge operations within the United Kingdom by foreign airlines is to grant such rights where British airlines can make comparable use of such reciprocal rights overseas or enjoy other compensatory competitive opportunities in return.