I propose to take Questions Nos. 4 to 7, inclusive, together and to circulate in a form of a tabular statement the statistical data requested by the Deputy.
The Deputy has requested my views on a number of issues on which I would comment as follows.
After three years of losses, Aer Lingus moved back into profit in 1983-84, recording a net profit before tax of £IR8.5 million. Figures in the range IR$300 million to IR£500 million have been indicated as the likely level of capital expenditure which replacement of aircraft will call for by the end of this decade. Aer Lingus realise that to fund this expenditure much higher levels of profits sustained over a period of years will be essential and the attainment of higher profits is a fundamental objective of Aer Lingus corporate planning.
Over the past two years, the Government have invested IR£30 million additional equity in the airline. In addition, cost alleviation payments totalling IR£15 million are being provided in respect of the Aerlinte trans-Atlantic operation over the period 1983-1986. These investments are seen as the maximum contribution that can be made available from the Exchequer towards a strengthening of the airlines capital base and the Government will be expecting Aer Lingus to come forward in due course with specific proposals in respect of the acquisition and funding of replacement aircraft. Since Aer Lingus is a major net earner of foreign currency, I would expect that any financing strategy for fleet replacement would involve some recourse to foreign borrowing. Aer Lingus has traditionally had considerable recourse to borrowings, both on foreign and domestic markets, and I would have every confidence that as in the past Aer Lingus will meet any borrowing commitments which it enters into.
Following is the statement:
Aer Lingus Financial Data
1. Net Profit before Tax
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Year ended 31 March 1984
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IR£8.524m net profit
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Year ended 31 March 1983
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IR£(1.741m) net loss
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2. Net Profit after Tax (Excluding Extraordinary Items)
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Year ended 31 March 1984
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IR£4.970 m net profit
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Year ended 31 March 1983
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IR£ (2.519m) net loss
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3. Foreign Debt
The Aer Lingus foreign debt at 31 October, 1984 was IR£142.1m.
4. Cost of Debt Servicing
The annual cost of debt servicing is approximately IR£12.5m, of which approximately IR£1m relates to Irish pound borrowings.
5. Capital Liabilities
Position at 31 March
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Interest Bearing
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Non-Interest Bearing
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IR£m
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1982
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160.7
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Nil
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1983
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154.6
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Nil
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1984
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169.2
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Nil
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6. Cost Alleviation Payments in respect of Trans-Atlantic Service
Year ended 31 March 1982
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Nil
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Year ended 31 March 1983
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IR£5m, equivalent to 2.1% of total operating cost
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Year ended 31 March 1984
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IR£4m, equivalent to 1.5% of total operating cost
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Notes
(a) Statistics are in respect of Aer Lingus Group, including Aerlínte Éireann.
(b) Interest-bearing capital under (5) includes irredeemable capital of IR£5m provided by the Minister for Finance in accordance with section 3 (1) of the Air Companies (Amendment) Act, 1969. Equity investment by the Exchequer is not included.
(c) Total operating cost under (6) above includes all air transportation operating expenditure for Aer Lingus and Aerlínte Éireann.