Written Answers. - Air Services.
Tony Killeen
Question:
148
Mr. Killeen
asked the
Minister for Public Enterprise
if her Department has noted the provisions of the US-UK Bilateral Air Agreement of 1990-1 which provides for a number of transAtlantic flights by British airlines through Ireland in anticipation of an open skies environment; if her Department has carried out a study or analysis of the way in which these developments would impinge on Aer Lingus and its future in view of that airline's declaration that future growth will be mostly geared to long-haul routes including the transatlantic; and the implications for Aer Lingus in its search for a strategic partner of getting involved with a group which could include British airlines which would claim rights for transatlantic flights through Ireland under any open skies agreement between the European Community and the United States of America.
[19398/98]
Where bilateral air services agreements are concluded between two countries, provisions on traffic rights at intermediate points in third countries — so called fifth freedom rights — are a normal feature. These rights are naturally subject in the first instance to the approval of the third countries involved.
I am aware that under the existing UK-US bilateral air services agreement, the US has conceded to the UK rights for UK airlines to carry traffic between some third countries, including Ireland, and the US. As I have said, the use of such rights, in the case of Irish traffic, is subject to the approval of the Irish authorities. In this regard I can advise the Deputy that, under the Ireland-UK bilateral Air Services Agreement, UK airlines are entitled to such rights to the US and Canada only at Shannon.
My Department has not carried out any general analysis of the impact on Aer Lingus of possible additional competition in the transatlantic market should UK airlines seek to take up these rights at Shannon. The rights have been available to UK airlines for a number of years without being taken up.
As regards a possible strategic alliance for Aer Lingus, I have asked the company to report back to me in due course on its efforts to secure such an alliance. It is only when I receive this report that any realistic assessment of the potential impact and implications of such an alliance can be made.
As regard a possible EU/US "open skies" deal, I can inform the Deputy that the existing mandate for negotiations by the Commission does not extend to market access issues. Agreement on extending that mandate to include market access has not been reached in the Transport Council of Ministers, where I have indicated my opposition to such an extension of the mandate on several occasions, the last being 1 October 1998.
