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17 JUNE 1980
Mr. Nott: I note the hon. Gentleman's view that this decision will cost a number of jobs. However, British Caledonian is not operating this route at present. It is due to start operating the route in August. If the hon. Gentleman is talk- ing about future jobs, that is a judgment for British Caledonian to make. I believe that British Caledonian is likely to fly this route. The frequency and the timing with which it does so is entirely a matter for it, based upon its own economic judg- ment of how it can make this route pay.
Mr. Onslow: Will my right hon. Friend underline the fact that he has not withdrawn any licence from British Caledonian in the way which has some- times been suggested and that there would be general disappointment among British Caledonian's many friends in this House if its management took the view that it could not compete in this situa- tion which my right hon. Friend has created?
Before the Civil Aviation Bill comes back to the House, will my right hon.
Friend take another look at the draft guidelines which have been linked with the Bill? If he finds that they do not reflect the same dynamic approach which his decision today indicates, will he change them so that they do reflect it?
Mr. Nott: I thank my hon. Friend for his remarks. As he says, no one is withdrawing a licence already granted to British Caledonian. It was granted a licence by the CAA and I am uphold ing that decision. [HON. MEMBERS : Ŏh"] That is surely correct. The right hon. Member for Lanarkshire. North. (Mr. Smith) is entitled to be a protagonist for one airline. I understand that.
If
he had read the evidence, he would know that there were protagonists for all the airlines.
Unless I am mistaken, the existing draft guidelines relate to the 1971 Act. The CAA has not yet issued any guide- lines in connection with the Bill which will come before the House and which will change the basis of the policy. Certainly I shall be looking with great interest at any guidelines which the CAA may decide to issue in relation to the Bill when it becomes an Act.
Mr. Ogden: As the Government were elected to provide competition, those
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outside the House who put the Govern- ment in office should not complain if he does so. Will he deal with a practical point? He knows from experience that Hong Kong has only one international Will he use airport; we have several. his influence to persuade the operators, especially the tour or leisure operators, that the United Kingdom end of the route does not have to be only Gatwick or Heathrow it should also be the Midlands, the North-East or Scotland. That is where the key to the leisure traffic lies.
Mr. Nott : I very much agree with what |
the hon. Gentleman has said. Of course. we want the airline operators to use the widest number of regional airports in attracting the kind of traffic which I be- lieve is available for the Hong Kong route. The question whether the traffic should go from regional points to Hong Kong. or from regional points via London to Hong Kong, is important. I agree with the hon. Gentleman's general point that there is a broad market in the United
Kingdom. Of course, I should like to sce the tour operators attracting people from all round the United Kingdom with what will be lower fares and a greater choice of service.
Mr. Speaker: Mr. Kenneth Warren.
Mr. Warren: It is so nice to have the name correct, Mr. Speaker. Does my right hon. Friend appreciate that I thoroughly applaud his decision and trust
it will mean that he will have the same
progressive attitude towards forthcoming decisions on cheaper air fares to Europe? May I press him further? Bearing in mind that he does not want to use the section for political direction, which he rejected, will he say precisely what nego tiations he had with the Hong Kong Gov- ernment to make sure that Laker is allowed to operate out of Hong Kong?
Mr. Nott: I have not had any nego- tiations with the Hong Kong Government. The Hong Kong licensing authority oper ates independently of the Hong Kong Government. I merely said in my state ment that, if Sir Freddie Laker decided that he wished to reapply to the Hong Kong licensing authority. I should hope that the Hong Kong Government would support that application-I cannot say more than that--and that they would grant it. It is up to Sir Freddie Laker to
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decide whether be Naturally I hope that cision is for him.
Sure
Mr. Foulkes: State appreciates tha donian take two DCI will pose an immed future of Caledonian forgotten men and wo of the pile will not get not fly even to Luto Kong. Does the righ accept that the Secr Scotland has, once ag and slapped in the f Will he perhaps advise burgh, who is officially on 3 July, what he future of jobs at Calc
Mr. Nott: I do n Gentleman's view of I think that it is an e can and will compete not understand why so the Opposition feel donian is uncompetiti structing British Calc often it should fly. I an the CAA's decision allowed to fly. That
I read in the news Caledonian has purcha craft for this route. I decision was taken o cannot be my respon that British Caledonia this route and that it fully. There is a ve market here. In due c lines will be profitable
Mr. Geoffrey Johns question of the purcha donian of two DC10s, Friend confirm that a that was done without from his own Ministry tive of British Caled expectation of getting was awarded to it b basis that there would Will he take it tha porters fully understa that guided his decis not only of competi Caledonian with resp it has played in pria country? Will not my need to say rather no
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