The Office of Fair Trading says it has not seen enough evidence of excessive air fares to warrant an investigation, despite claims of prices quadrupling in TT week.

Both the OFT and the Department of Infrastructure pointed to market forces being a key factor in determining fares.

Concern that air fares were going sky high during the peak periods was raised in Tynwald this week, with both David Ashford (Douglas North) and Lawrie Hooper (LibVannin, Ramsey) quoting examples of vastly different prices on the same route.

Mr Hooper said there was an instance of one air fare on the same route jumping from £92 to £420 in TT week.

OFT vice-chairman Geoff Corkish MLC, speaking in the absence of chairman Martyn Perkins, said that while it was not in a position to regulate prices, it could set up an inquiry if there was evidence that prices were excessive and of major public concern.

Such an inquiry could then report to the Council of Ministers.

However, he added: ’There is no evidence that competition is failing to ensure reasonable prices.’

Earlier, Mr Ashford tabled a question for Infrastructure Minister Ray Harmer asking what plans he had to ensure air fares did not become excessive.

Mr Harmer confirmed that his department was committed to ensuring sustainable air routes and added that market forces often dictated varying prices,

’We need to strike a balance between securing a wide variety of air routes and flight times and making sure that those routes are sustainable for the longer term by securing the right number of passengers at the right fare prices,’ he said.

effective

The open skies policy - no regulation for air services - had ’as a rule’ been effective in controlling prices.

’We use our airport charging regimes to try to encourage volume of passengers and low fare traffic.’

If the Department of Infrastructure received complaints about prices, it would ’approach the airline concerned with examples of complaints received and discuss the comments’.

He added: ’If the prices were of a level that is not sustainable, then the number of passengers would decrease and the route would become unviable to operate and the service would cease.’

Mr Ashford cited prices on the Isle of Man to Birmingham route, at £84.49 in the week before TT fortnight, rising to £265.99 in practice week, up to £271.99 in race week, before dropping down to £155.99 in the week after the TT.

He commented: ’The trebling of price over TT is certainly a market force to be reckoned with.’