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Dáil Éireann debate -
Thursday, 7 Mar 2002

Vol. 550 No. 2

Written Answers. - Future of Aer Lingus.

John Bruton

Question:

127 Mr. J. Bruton asked the Minister for Public Enterprise her long-term plan for Aer Lingus; if it is intended to have a merger between Aer Lingus and another company; and if she will make a statement on the matter. [7865/02]

The priority for my Department and for Aer Lingus itself is the urgent implementation of its survival plan which is aimed at restoring the company to viability. While significant progress has been made in relation to the survival plan and a degree of stability has emerged, Aer Lingus is still in a very vulnerable position due to its strained cash position and weak balance sheet. Considerable management action and initiative will be required in 2002 both to fully implement the very significant changes envisaged in the survival plan in the timescale required and also to continue to meet revenue and operating targets. In addition, external investment is necessary to support the future development of the company and the Government decision of 23 October 2001 to facilitate private sector and staff investment in the airline still stands. Considerable progress has been made on the increased staff shareholding in the company and I expect talks to resume on this matter soon.

However, arrangements to give effect to the private sector investment will not be activated pending resolution of the pilots' dispute. This dispute is the subject of arbitration and facilitation processes as proposed by the Labour Relations Commission, which are expected to be completed shortly.

Question No. 128 answered with Question No. 121.

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