§ Mr. O'Brienasked the Secretary of State for Transport what assessment he has made of the implications of the extent to which lower aviation fuel prices have been passed on to the consumer by airlines for his policy on competition in the airline business; and if he will make a statement.
§ Mr. Michael SpicerThe regulation of air fares is primarily for the Civil Aviation Authority. The authority looks at all of a United Kingdom airline's costs, including its fuel costs, when exercising its regulatory functions. Through our competition policy, it is for each airline to take the initiative in deciding whether to pass to the consumer any benefits it may receive from cheaper fuel; but fuel is only one factor in aviation costs which must be taken into account. Airlines also have to consider changes in other operating costs and levels of traffic and revenue.