HC Deb 21 April 1994 vol 241 cc661-2W
Mr. Nigel Griffiths

To ask the Secretary of State for Transport what comparisons he has made of the cost of domestic air fares in the United Kingdom, the United States of America and other countries.

Mr. Norris

Comparisons of fare levels in different countries are subject to wide margins of error. The CAA recently published a range of fares comparisons in its document "Airline Competition in the Single European Market" (CAP 623). The broad conclusion was that fully flexible United Kingdom domestic fares were comparable with France, lower than Germany but higher than in some other EU states. The reasons for such differences are not at all clear. The position in the United States depended very much on the airline operating the service. Where a low-cost airline such as Southwest Airlines operated, fares were exceptionally low not only by the standards of the United Kingdom and Europe but also compared to other United States routes, on which fares were sometimes higher than in the United Kingdom.

Mr. Nigel Griffiths

To ask the Secretary of State for Transport if he will take steps to bring United Kingdom domestic air fares down.

Mr. Norris

The setting of air fares is essentially a matter for the commercial judgment of airlines. United Kingdom airlines had considerable freedom to compete by setting their own air fares on domestic routes for a number of years even before free pricing was introduced by the EC single market.

We believe that airlines should be free to set their own fares with a minimum of regulatory intervention. This is consistent with an open and competitive market and is in the best overall interests of users. Safeguards are, however, available under EC regulation 2409/92 to combat the exploitation of consumers by airlines charging excessively high fares.