§ 26. Mr. Heathcoat-AmoryTo ask the Secretary of State for Transport what further steps he is taking to encourage moves towards the liberalisation of European air fares; and if he will make a statement.
§ Mr. Peter BottomleyThe EC liberalisation package came into force on 1 January this year. It is an important step in opening up aviation in the EC to market forces. It gives airlines the opportunity to introduce lower fares, to decide for themselves what capacity to operate, to open up new routes and to compete more vigorously on routes already served, within a framework of fair competition.
It is only a first step. The Council is committed to bringing in further measures during 1990 as part of the process of completing the internal market by 1992.
We have already negotiated even more liberal arrangements with Germany and the Benelux countries. We shall be seeking to build on this in further bilateral discussions with other member states.