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Dáil Éireann debate -
Wednesday, 17 Dec 1980

Vol. 325 No. 8

Written Answers. - Exports to US.

251.

asked the Minister for Transport if his Department have had consultations with Aer Lingus in regard to the transport of Irish exports to the United States to ensure satisfactory and reasonable cost charges for these exports; if he is aware of the present charges for the export of goods to the United States and if he is satisfied with the cost of same; if he is aware of a differential between the cost scale of exports from Ireland and the cost scale of goods flown by Aer Lingus from Britain to the United States; and if he will make a statement on the matter.

I am aware of the present cargo rates charged by Aer Lingus between Ireland and the United States. Such rates are subject to my approval and in examining applications by the airlines for increases in rates, I take into account, among other things, the need for Ireland-U.S. rates to be set at levels which will make them economically viable while remaining attractive to the customer. The market is in a very depressed state at present and the Aer Lingus transatlantic cargo services are not profitable.

Last year, Aer Lingus operated B-707 freighter services twice weekly between London, Shannon and New York. Due to the fiercely competitive situation in the US-UK cargo market extremely low rates prevail on these routes. One result of this has been that in the last year Aer Lingus have reduced their London-Shannon-New York freighter service from two flights per week to one. For this service Aer Lingus must use the UK-US level of rates for consignments originating in or destined for London, which form the bulk of traffic. Aer Lingus consider that, despite the low level of rates prevailing, the traffic contributes to the overall economics of their freighter service and is a factor in their ability to continue to offer the service. It would be impossible to offer any transatlantic freight service if the Irish rates were to be reduced to the UK level.

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