asked the Minister for Transport and Power if he will make a statement regarding the proposals to relieve Aer Lingus of the cost of landing fees, war risk insurance and special security measures at Irish airports.
Ceisteanna—Questions. Oral Answers. - Reliefs to Aer Lingus.
59.
As the Deputy is aware the Dáil voted a Supplementary Estimate for my Department on 28th March last to defray certain charges arising in 1972-73. These include a provision for payment of approximately £265,000 to the air companies for 1972-73 towards certain additional costs which they have had to incure because of the exceptional security risks now arising in civil aviation. These additional costs arise in the area of war risk insurance and special security measures for their aircraft and passengers. They represent a heavy burden on the air companies and aggravate the already difficult financial position of the companies.
Many other administrations are assisting their national airlines in meeting the higher insurance premiums and it is clear that if Aer Lingus and Arlínte were to continue to bear the additional costs without assistance they would be at a significant disadvantage vis-à-vis their competitors. In these circumstances it was decided to grant financial relief to the air companies to the extent of 75 per cent of war risk insurance premium costs and also charges levied by Aer Rianta in respect of special additional security measures now provided by that company. It is not possible at this stage to estimate accurately the cost of this relief for the current financial year as it will depend on fluctuations in insurance rates.
I also decided with effect from 1st January, 1973, to accord a rebate of 60 per cent in landing fees for all domestic flights. The uneconomic nature of short-haul air services is recognised in other countries by the grant of similar rebates and the concession will place the air companies on a comparable footing with their competitors. The cost of this concession is estimated at £300,000 in a full financial year.