§ Mr. MichaelTo ask the Secretary of State for Transport if he will approach the European Commission to seek assistance for airline operators in Europe in order to survive the impact of the Gulf war, to be given in such a way as to ensure that British companies are operating on a level playing field both inside and outside Europe.
§ Mr. McLoughlinThe EC Commissioner for competition has already indicated that if Governments wish to make subsidies available to their airlines, the Commission will be concerned to ensure that competition is not unduly distorted to the detriment of consumers and of airlines whose governments do not think that giving subsidies is an appropriate response to current problems. The Government welcome this approach.
§ Mr. MichaelTo ask the Secretary of State for Transport what processes are available for reconsideration of licences where a foreign government are subsidising their national airline in such a way as to offer unfair competition to United Kingdom operators.
§ Mr. McLoughlinWithin the European Community, subsidies are governed by the treaty of Rome rules. Outside the EC, the effect of subsidies to national airlines on competition would fall to be considered under the terms of individual bilateral arrangements between the United Kingdom and other countries.
§ Mr. MichaelTo ask the Secretary of State for Transport what assessment he has made of the Government subsidy provided to the airline Sabena during 49W the Gulf crisis on (a) British airlines with which it is in competition and (b) the creation of a level playing field in air transport within Europe and worldwide.
§ Mr. McLoughlinI understand that while Sabena has said that it would like a subsidy, the Belgian Government have not announced that they will give one. Any proposal for state aid by EC member states to national airlines would have to be notified to the EC Commission, which would be concerned to ensure that there is no undue distortion of the competition in the aviation market.
§ Mr. MichaelTo ask the Secretary of State for Transport (1) whether he will make arrangements(a) to facilitate extended credit for United Kingdom air operators and (b) to provide direct financial assistance to small airlines to enable them to absorb the impact of the Gulf war;
(2) what assessment he has made of the impact on (a) fair competition and (b) British air operators of fuel subsidies offered by foreign Governments to their operators; and if he has any plans to help United Kingdom operators in this respect.
§ Mr. McLoughlinIt is for airlines themselves to respond to changing market conditions in the light of their commercial judgment.
§ Mr. MichaelTo ask the Secretary of State for Transport whether he will arrange for Civil Aviation Authority charges to be waived or deferred in order to safeguard the position of United Kingdom operators during the Gulf war.
§ Mr. McLoughlinI have no plans to do so.