asked the Minister for Tourism and Transport his views on whether the proposed liberalisation of air transport in Europe will lead to the formation of a small number of mega-airlines, as deregulation led to only five mega-airlines in the USA; the effect this type of liberalisation would have on Aer Lingus; the steps, if any, taken by Aer Lingus in the event of the introduction of liberalisation; the plans, if any Aer Lingus have to merge with smaller European airlines or if they are hoping to consolidate with one of the mega-airlines in Europe or the USA; and if he will make a statement on the matter.
Written Answers. - Liberalisation of Air Transport.
41.
US-style deregulation is not considered by European Administrations to be appropriate to European conditions. There are, however, proposals for a more liberal regulatory system which will make it easier for airlines to introduce new services and give airlines greater flexibility in regard to the capacity to be provided and the fares to be charged. These proposals have my strong support and I hope that agreement on their introduction can be reached before the end of the year.
The proposed new regime will allow a greater degree of competition and thus provide both threats and opportunities for all airlines, including Aer Lingus. I know that Aer Lingus are alive to the situation and are taking appropriate steps to meet the new challenge by various means, including reductions in costs, the improvement of efficiency and consideration of joint ventures and other co-operative arrangements with other airlines. I have every confidence in the ability of Aer Lingus to hold its place in the very competitive environment now developing in Europe.