§ Mrs. DunwoodyTo ask the Secretary of State for Transport what mechanism his Department uses to ensure that the public interest is protected against the dominance of one airline in the UK, with special reference to domestic services. [32794]
§ Mr. NorrisUnder EC regulation 2409/92, the Secretary of State, having taken advice from the CAA, has powers to
(a) require a fare on an intra-EC route to be withdrawn where he considers that the fare is excessively high to the disadvantage of users in relation to costs; and(b) stop further reductions in air fares on an intra-EC route, if he considers that there has been sustained down movement in fares unrelated to costs, resulted in widespread losses among the air carriers operating on that route.The Director General of Fair Trading has powers to apply UK competition legislation in relation to domestic air services and does so with the assistance of the CAA.
Where trade between member states is affected, EC competition law applies. Decisions on these cases are for the European Commission.