asked the Minister for Transport and Power if he will state (1) the number of jet aircraft which Aer Lingus are purchasing for the London-Dublin and Continental routes; (2) the make of aircraft and the name of the firm from which they are being purchased; (3) the price to be paid for such aircraft; and (4) how it is proposed to finance the purchase.
Ceisteanna—Questions. Oral Answers. - Purchase of Jet Aircraft.
12.
Aer Lingus have placed orders for four jet aircraft for service primarily on the Continental routes. The aircraft is the BAC One-Eleven manufactured by the British Aircraft Corporation. The price of the four aircraft, including supporting equipment and development expenses, is of the order of £5 million. The purchase will be financed from the Company's own resources (depreciation reserves), by means of loans and by the provision of £2 million from the Exchequer in the form of equity capital.
Do I understand from the Minister's reply that he is not introducing legislation relative to the purchase of these aircraft which he previously informed me he would be introducing?
I do not know to what legislation the Deputy is referring.
When I asked the Minister a question about the type of aircraft which would be bought, I was told that I would have an opportunity of discussing it when he was introducing legislation. Do I understand that he will not be introducing that legislation?
The Deputy may have misunderstood me or I may have inadvertently said "legislation" instead of "the Estimate". I intended to say that he could discuss the air company on the Estimate and I apologise to the Deputy if I gave him other information.
In regard to the financial provisions, as I understood the reply, the reserves of Aer Lingus are to be used, plus some other financial source which I did not catch. Could the Minister repeat that part of the answer?
The purchase will be financed from the company's own resources (depreciation reserves), by means of loans and by the provision of £2 million from the Exchequer in the form of equity capital.
Could the Minister indicate what reserves the company have at their disposal?
The company put aside depreciation reserves every year before declaring their operating surplus.
Could the Minister not tell us what financial resources they have?
As this purchase is to be effected over three years, it would be impossible to say how the depreciation reserves will arise in this financial year, or the next, or in the following one. It will partly be a matter for negotiation between the company and the banks and partly of how equity capital is provided for them.
Have they any financial resources at all at present?
When the Deputy sees the company's report, he will find that before declaring an operating surplus, they will have put aside sums for depreciation.