asked the Minister for Industry and Commerce whether the terms of the agreement for the operation by Aerlínte of a transatlantic air service have been settled, and, if so, if he will inform Dáil Éireann of the terms of the agreement.
Ceisteanna—Questions. Oral Answers. - Transatlantic Air Service.
asked the Minister for Industry and Commerce if he will make a full statement on the proposed transatlantic air service with particular reference to (a) the development of Shannon as the country's transatlantic airport, (b) the method of financing the new air service, and (c) the employment potential and the earnings potential of the proposed service.
asked the Minister for Industry and Commerce if he will state what arrangements have been made for a transatlantic air service; and what commitments have been entered into for the purpose of such a service.
asked the Minister for Industry and Commerce if he will make a full statement on the proposed transatlantic air service, with particular reference to the method of financing the new air service.
I propose, with the permission of the Ceann Comhairle, to take Questions Nos. 17, 18, 19 and 20 together.
The agreement for the operation of the Aerlínte transatlantic service provides for the use of chartered aircraft. No question of capital expenditure on the acquisition of aircraft arises, and any working capital required will be met by Aerlínte out of their own resources or by borrowing. No additional capital investment by the Exchequer is contemplated.
It is estimated that the Aerlínte service can achieve the same average year-round utilisation of seats as has been experienced by all companies operating on transatlantic routes, and on that basis, it will operate profitably. As regards employment, it is intended to make arrangements to cater for the service through the Aer Lingus organisation.
The introduction of the proposed transatlantic air service does not affect the Government's policy to develop Shannon as the only transatlantic airport in this country. Arrangements are being made for the construction of a new jet runway there, and a new Shannon development authority has recently been set up further to develop the facilities and amenities of the airport and surrounding areas so as to attract additional traffic, and particularly terminal tourist traffic.
Would the Minister say whether any assurance has yet been received from any of the transatlantic air companies that they will use the extended runway at Shannon for the new jet planes when the runway has been constructed?
So far as I know, the companies which will be acquiring these aircraft and which are now making plans for their utilisation from 1960 onwards, will certainly use that runway for these aircraft. I do not quite follow the question. I do not see what option they would have.
The Minister is aware that 12 months ago or thereabouts it was not possible to ascertain from the transatlantic air companies whether in fact they would use the extended runway, if it were provided, but it was felt at that time that you might remove an excuse for their not using it, if the runway were provided. I caused the Secretary of the Department to go to America to discuss the utilisation of the extended runway with these transatlantic air companies. Would the Minister say whether, since then, any assurance has been received from these companies that they will in fact use the runway at Shannon, when it is provided, instead of overflying Shannon and using another equally serviceable runway, perhaps, in some other European city?
If I understand the Deputy's question, it is divided into two parts. First of all, the existing runways at Shannon are not capable of taking the heavy jet aircraft. Unless Shannon is to be closed down altogether, a runway capable of taking these aircraft must be provided. With regard to the effect of the development of jet aircraft on the transatlantic routes upon the future of Shannon, as I have explained, we have set up a Shannon development authority which has been charged with the duty of developing the amenities at Shannon, investigating the possibility of increasing the freight business there and generally exploiting the tourist potentialities of the Shannon airport and its hinterland with a view to the increase of the business of the airport, particularly terminal traffic.
The main point is that the transatlantic air companies are believed to be interested in finding long runways, heavily reinforced, for the new jet planes. It was desired— 12 months ago, at all events—to ascertain if they would continue to use Shannon with that new type of plane if the Shannon runways were extended and reinforced—because they can take a decision that Shannon is not to be a landing-point for this particular type of aircraft. Has any assurance been received from the transatlantic air companies that, in fact, they will stop at Shannon in the case of this new heavy type of jet aircraft?
That is far too sweeping a question. There are about 20 air companies operating through Shannon. I do not want to suggest that we have discussed with every one of them their operational plans after 1960. The problem that will arise for Shannon, with the development of the jet aircraft, is under active discussion with all those who are in a position to advise us.
Let us cut out 17 of the 20 air companies. I have in mind now three specific air companies—T.W.A., P.A.A., and Trans-Canada. Have any of these given an assurance that they will use the new jet runway?
I do not know what the Deputy means by "assurances". There have been discussions with all these companies regarding their future operational plans. As regards using the new jet runways, we will not allow them to use any other with these heavy aircraft because the others would not stand them.
It is not what you will allow them to use, but what they will use. Has any effort been made in the past 12 months to ensure that, having constructed and reinforced this new runway at a cost of £1,000,000, these transatlantic air services will use the new runway?
If the new runway were not there, Shannon airport would shut down some time after 1960.
We know that. We took a decision on that.
Question No. 21.