asked the Minister for Transport and Power the cost of the Aer Lingus jumbo jets and their equipment; and if they will be in service through the year.
Ceisteanna—Questions. Oral Answers. - Jumbo Jets.
26.
The total cost of the two Boeing 747 was £18 million approximately.
At this stage, Aerlínte are not scheduling these aircraft for service during the coming winter but intend to use them on an ad hoc basis when this is warranted and also to lease them for short-or long-term operations to other airlines if such business can be secured.
Are we being told now by the Minister that, in fact, on 1st November no arrangements have been made to use this enormous capital investment during the winter months?
A leasing arrangement with Trans-Caribbean Airways was contracted for. This arrangement was broken and legal remedies for damages are being pursued at the moment in the American courts. Other leasing arrangements are being pursued.
Is it expected that the revenue from this traffic might reach 10 per cent of the interest on the capital expenditure? Would it be possible to get £1.8 million revenue from the jumbo aircraft any year?
Aerlínte at no stage intended to utilise these planes all the year round.
Did they expect to get £1.8 million revenue?
Depending on the success of the leasing arrangements, yes.
Would the Minister be able to tell us how much revenue has been received through the use of these planes in the current year?
They have only operated during the peak period. There were leasing arrangements with Trans-Caribbean Airways. These arrangements have fallen through. Trans-Caribbean Airways withdrew from their contracting arrangements. We hope to secure legal damages which would fully reimburse Aerlínte. In the meantime we are pursuing other leasing arrangements. Executive personnel have been seconded for this work and are pursuing a number of lines.
Would the Minister agree that £18 million is a lot of capital to spend particularly when the planes are not being used?
Will the revenue be less than £1.8 million?
The aircraft were never intended to be used by Aerlínte for a full year. The aim is to get the maximum advantage through leasing arrangements.
The Minister seemed to imply that if the planes were not leased for the winter the revenue would be less than £1.8 million? Does the Minister intend to imply that?
No, not necessarily.
What is the revenue for this year?
I have not got the figure yet. I will have the figures for the past season shortly.
Will there be any revenue from these aircraft except at the height of the season?
We have not the figures for the season which has just finished.
There was no net revenue and the Minister knows it well.
Has the Minister any idea of the estimated annual depreciation of a jumbo jet?
That is a separate question.
The jumbo jet, white elephant—a good name.