asked the Minister for Communications if the Government is preparing anti-consumer legislation which will mean higher prices for travellers on trans-Atlantic routes; and if he will explain the consequences of the coming into force of the Air Transport Bill, 1984.
Written Answers. - Consumer Legislation.
431.
The answer to the first part of the question is an emphatic no. It is normal practice for National Civil Aviation Authorities to maintain official control over the level of international air fares and what we are seeking, nothing more nothing less, is the same power as all other administrations. My powers in this regard are set out in the Air Navigation and Transport Act, 1965, which has been applied to regulate the sale of air fares on journeys to, from and within the State. Doubt has been cast on my powers. The Air Transport Bill, 1984, merely seeks to clarify and confirm my powers in this regard and its essential purpose is to enable the effective exercise of control over air tariffs when I consider it necessary to do so. In giving effect to this objective, the Bill confers discretionary powers enabling me: 1. to require the submission of specified tariffs, and 2. to approve of, modify or disapprove of tariff proposals.
I intend to continue to exercise independent authority over airline tariff proposals to ensure that the community have available the lowest possible economic air fares consistent with market stability and the maintenance of a wide range of direct services to and from Ireland. In order to give effect to this objective, the Bill provides that, where I require an airline to submit air tariff proposals and where I approve such proposals, the airline will stick to selling at those levels both directly and through intermediaries. The Bill does not however contain any restrictions on the number, type, range or level of air tariffs which may be submitted by airlines. These controls are essential if predatory pricing is not to be allowed endanger continuity of service.
I want to make it clear that the Air Transport Bill, the Second Stage of which was taken before the Summer Recess, will go ahead despite the ill-informed reaction of certain members of the public. I also want to stress that the powers sought in the Bill, will as before, be exercised with particular regard for the consumer for whom price and continuity of service are major concerns.
As the Deputy has expressed particular concern about trans-Atlantic fares, I would like for the record to outline for the Deputy's information the favourable fare levels prevailing from Ireland to the US this Summer vis-à-vis other large European gateways. While higher and lower fares are generally available at most gateways, the fares indicated are broadly representative of the dominant levels prevailing in respect of executive and economy fares:
|
Executive |
Economy |
|
|
Dublin/New York IR £ |
399 |
349 |
|
Rate per Mile (3201) IR p |
12.5 |
10.9 |
|
London/New York UK £ |
472 |
367 |
|
Rate per Mile (3456) IR p |
16.9 |
13.1 |
|
Paris/New York FFR |
5515 |
3985 |
|
Rate per Mile (3628) IR p |
16.2 |
11.7 |
|
Frankfurt/New York DM |
1914 |
1732 |
|
Rate per Mile (3851) IR p |
16.3 |
14.7 |
|
Amsterdam/New York DFL |
1635 |
1404 |
|
Rate per Mile (3639) IR p |
13.0 |
11.3 |
These are not selective examples but were chosen because the cities listed are the major gateways for travel from Europe to the US. The Deputy will note that the cost per mile is lower from Dublin than from any of the other cities listed.