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Dáil Éireann debate -
Tuesday, 3 Nov 1987

Vol. 374 No. 9

Written Answers. - Deregulation of Air Fares.

95.

asked the Minister for Tourism and Transport the time-table for the deregulation of air-fares to (a) Canada, (b) the Continent and (c) provincial centres in Britain.

There are no proposals that I am aware of for the deregulation of air fares to Canada, the Continent of Europe and provincial centres in Britain.

There are, however, proposals for increased flexibility in air fares (i) under an EC air transport package, finalised but not adopted by the Council of Ministers last June.

This package provides, inter alia, for more flexible regulatory arrangements in the area of air fares by granting airlines of member states operating within the Community greater pricing freedom by permitting.

—the unilateral filing of fares;

—automatic Government approval of certain fare proposals conforming to specified price and fare type parameters; and

—a speedy arbitration procedure to remedy disputes.

The proposals have not however been adopted because of a dispute between the UK and Spain over the status of Gibraltar Airport. I am hopeful, however, that this issue can be resolved before the end of the year;

(ii) under an International Agreement of 16 June 1987 on intra-European tariffs drawn up by the European Civil Aviation Conference (ECAC) with 22 European member states, including Ireland, which provides similarly for individual filing of tariffs by airlines, automatic approval of fares within defined zones of flexibility and a more rapid disputes settlement procedure. I am considering at present whether Ireland should formally ratify this Agreement.

In addition to developments at EC and ECAC, in May last I announced a new low air fares strategy aimed at increasing tourist numbers. The campaign towards lower air fares is continuing. Reduced fares from the Continent for next year, particularly from France and Germany have already been announced by Aer Lingus. Innovative fares from provincial centres in Britain have also been arranged. Ryanair are finalising contracts for next year in respect of charter traffic from the Continent, particularly France and Germany, and the packages they are putting together should also prove attractive in terms of overall fare levels.

Furthermore, I am at present reviewing existing charter rules including those relating to charter fares. This review is almost completed and I hope to announce the proposed changes to the rules shortly. These rules will apply, inter alia, to charter operations between Ireland and Canada. As the Deputy may be aware, there are no scheduled air services between Ireland and Canada.

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