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Air Fares

Volume 175: debated on Monday 2 July 1990

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To ask the Secretary of State for Trade and Industry what progress has been made in the reduction of air fares within the European Economic Community; and if he is able to provide some examples of specific reductions.

I have been asked to reply.The European Community Council of Transport Ministers meeting on 18 June agreed on a second stage of air transport liberalisation measures and committed themselves to complete a single market in aviation by the end of 1992. The agreement reached will give airlines greater freedom to set innovative fares and take advantage of more open access to the market. The setting of fare levels is a matter for airlines' commercial judgment. However, where the United Kingdom has already concluded liberal bilateral agreements with other countries, fares have come down.