§ Mr. KirkwoodTo ask the Secretary of State for Transport what steps he proposes to take to reduce air fares on western European air routes operated on a bilateral basis by two national airlines.
§ Mr. McLoughlinWe believe that airlines should be free to set their own fares with a minimum of regulatory intervention. As a safeguard, however, European Community measures already exist which provide that fares may not be excessive in relation to the relevant costs. The introduction of the single European market in 1993 will provide greater freedom for setting fares responding to market forces, and we shall continue to urge that safeguards are provided against excessive fares.