Examination of Witnesses (Questions 360
- 370)
WEDNESDAY 7 JUNE 2000
MR VIJENDRAN
ALFREDS AND
MR GERRY
STEVENS
360. You still think that someone like Virgin
can offer a superior service, do you?
(Mr Stevens) My understanding, at least as far as
British Airways and Virgin are concerned, is that they do not
tend to discount in business class across the Atlantic but I think
that is on the surface. If they are charging the published levels
then they are quite lucrative fares.
361. We have been talking about what would to
happen if the European Commission were to do the negotiating and
we have had your reply to that, but are you concerned, I must
choose words very carefully here, that the arrangement between
British Airways and KLM would damage your interests at any point?
Do you think you would be more likely to be able to compete with
them and to be offered Fifth Freedom rights or less likely?
(Mr Alfreds) We have been competing with alliances
for a very long time. One World has a very strong presence in
our part of the world. In fact some of us suspect it was set up
to do us in, Qantas and British Airways and Cathay, so we do not
fear—
362. What about slots?
(Mr Alfreds) At Heathrow? We are only asking for one
flight a day. We do not think there should be any problem in getting
slots for that.
363. You are saying one pair?
(Mr Alfreds) We operate three times a day from Heathrow
to Singapore.
364. Do you intend to ask Virgin Atlantic to
relinquish some of its slots at Heathrow?
(Mr Alfreds) No, we do not think that will be necessary
for one flight a day. We should be able to get that from the slots
allocation committee.
365. Would you expect to operate joint services
from the United States with Virgin if they were able to obtain
these concessions?
(Mr Alfreds) Once they had the rights, as Gerry mentioned
earlier, there are many steps before they can get the rights or
we get the rights to operate code share with them. We could, that
is possible.
Mrs Gorman
366. Can I just ask one question. I asked Sir
Richard a fairly basic question because I do not know a great
deal about this industry and he said in order to get a quart into
a pint pot at Heathrow you have to shove out the domestic routes.
If these businessmen are flying in and out of major airports like
Heathrow, they want to fly on, do they not, they want to nip up
to Glasgow or wherever. You say you only want one more slot a
day and everybody else says they only want one more. You have
got to balance the international market with the domestic market,
it is not something completely separate. I wondered how realistic
all this is that you have only got to shove out a domestic route
and everything in the garden would be lovely. Could you comment
on that?
(Mr Stevens) I do not think we would regard it as
an easy matter at all. Heathrow is very congested and slots are
few and far between. It is easy for us to say we only want two
slots, but I suppose everyone else wants just two slots, but it
is a fact that slots do become available from time to time at
various times during the day.
367. How often?
(Mr Stevens) I do not know the exact availability.
368. Casually during the day a slot will become
available?
(Mr Stevens) People come and go, services and schedules
change. They may be at times that are not particularly convenient.
369. You could not build those gratuitous slots
into your schedules?
(Mr Stevens) You cannot do what you want. You have
to accept certain constraints, which indeed we already have with
our current schedules. I would like to emphasise that we regard
UK domestic services as very important not only for the consumer
choice which you have mentioned but also because those very domestic
services are feeding on to our flights. If they are moved on to
other airports or diminished in frequency then we suffer as well.
I would not pretend for one moment there is an easy answer to
this. We have to get the slots if we can.
Chairman
370. Let me ask one last question, what do you
think it would take to move the government of the UK further in
your direction?
(Mr Alfreds) We really depend on fair play. We think
that finally the Government will recognise that we have given
the British carriers, the British airlines considerable rights
out of Singapore. British Airways has been operating out of Singapore
for many years. British airlines have the right to hub in Singapore.
No-one has yet taken that up but there is a considerable opportunity
there and we hope that the British sense of fair play will come
into play soon.
Chairman: On that cheerful note, Mr Alfreds,
thank you very much indeed. You have been very patient.
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