§ Mr. Matthew BanksTo ask the Secretary of State for Transport what steps he is taking to ensure that the European aviation market is fully liberalised, and that any agreement does not allow individual member states to prevent airlines from setting market fares.
§ Mr. NorrisMy right hon. Friend attended the EC Transport Council in Luxembourg on 22 June, at which an historic agreement on aviation liberalisation was concluded. This was the culmination of a 10-year process, in which the Government have been in the lead throughout.
We welcome the agreement, which will lead to a liberal aviation market from the beginning of next year, sweeping away traditional restrictions on market entry and setting fares, and encouraging true competition. This will enable Community air carriers to mount services and set fares according to their own commercial judgment, stimulating improved services and lower fares. There are tightly drawn safeguards to protect the consumer from excessively high and other anti-competitive fares.
The agreement is good news for the consumer and for competitive airlines.