Written Answers. - Aviation Price Increases.
Tony Killeen
Ceist:
32
Mr. Killeen
asked the
Minister for Transport, Energy and Communications
the reason for the aviation price increases in this country, recently outlined in the American Exports Airfare Index; and if he will make a statement on the matter.
[7595/96]
I presume the Deputy is referring to the American Express air fare index which was launched in June 1995 and which is published on a quarterly basis.
I would like first to inform the Deputy of the regulatory position in relation to control of air fares which is as follows: under the provisions of Council Regulation (EEC) No. 2409/92 which came into effect on 1 January 1993, air carriers licensed in the European Economic Area are free to set air fares and the conditions under which these fares apply in respect of carriage within the EEA in accordance with their own commercial judgment, subject to certain safeguards. As Community air carriers and those from Norway and Iceland which make up the EEA are no longer required to obtain Government approval for air fares in respect of carriage within the EEA, I have no statutory function in the matter.
Fares on services between Ireland and non-EEA countries are governed by individual bilateral air agreements. By and large, as in the case of the USA, these include liberal provisions in relation to air fares. This would mean that only in very exceptional circumstances would the respective aviation authorities intervene in relation to fares.
I have, however, examined the latest published American Express Index and the accompanying press release which compares increases on five to six published air fares from 51 major cities in western Europe on a quarterly basis. On the basis of this examination, I believe that the reference in the press release and subsequently in the media coverage to price increases on all Ireland-European air services is misleading. Overall the index shows that Ireland compares very favourably with other European countries, whether comparing simple average or weighted average increases for major European points.
In respect of Ireland, the index compares five fare types on the following eight routes — Amsterdam, Brussels, Frankfurt, London, Manchester, Paris, Rome and New York.
The year on year changes on fares i.e. Quarter 1 1995 v Quarter 1 1996 for the 40 fares i.e. five fares for each of the eight routes are as follows: decreases ranging from — 19 per cent to 4 per cent on seven fares on four routes; no change on 18 fares on six routes; increases of 2 per cent on five fares on 2 routes; increases of 3 per cent on three fares on one route; an increase of 4 per cent on one fare on one route; an increase of 5 per cent on two fares on one route; an increase of 11 per cent on one fare on one route; an increase of 15 per cent on one fare on one route and an increase of 20 per cent on two fares on one route.
The latter two increases which are credited as taking place on leisure fares to Rome are disputed by Aer Lingus, which advise that there was no change on one fare while the other increased by 18 per cent as the result of the ending of a special promotional fare, and the fare returning to the pre-promotional level. In the case of the 11 per cent increase, this relates to the business class fare on the New York route.
Overall, in relation to Irish fares it is clear that where increases have taken place, that the bulk are generally either below or in line with inflation trends. I am particularly pleased to note that the trend on leisure fares is largely one of fare reductions or no change.
I should also point out in relation to fare comparisons that it is important to look at trends over time as timing of price increases, special offers etc, may give rise to a misleading impression at a particular time.
