Vol. 380 No. 10
asked the Minister for Tourism and Transport if he has any plans for private participation in Aer Lingus or Aer Línte; if he has any plans to permit joint airline ventures between Aer Lingus and any private concerns; and if he will make a statement on the matter.
31.
asked the Minister for Tourism and Transport if his approval has been sought by Aer Lingus to acquire shares in any other European, foreign or domestic airline; if so, if he will grant approval; and if he will make a statement on the matter.
I propose to take Questions Nos. 17 and 31 together. I have no plans for private participation in the Aer Lingus Group or plans to permit a joint venture between Aer Lingus and any other airline privately owned or otherwise which would affect the ownership or shareholding of the company.
As the Deputy is aware, Aer Lingus as part of their normal day-to-day operations participate in joint venture operations with other airlines involving, inter alia, leasing and maintenance contracts. Such participation is a matter entirely for the company and my approval is not required.
In a radically changing regulatory environment, Aer Lingus are constantly reviewing the possibilities for joint ventures and co-operation with other airlines on a shareholding basis. The company have recently announced the formation of a joint venture with Securicor to develop the rapidly expanding door to door delivery business in Ireland, Britain and the Continent. They are also contemplating taking up a minority shareholding in a small UK regional carrier. I am not, however, for reasons of commercial confidentiality, in a position to give any further details at this stage but I can say that I have no objection in principle to what is proposed.
I am aware that Aer Lingus are also exploring the possibility of taking up a shareholding in a foreign-based airline, but again for reasons of commercial confidentiality and since the whole matter is at a very early stage, it would not be appropriate for me to give any further details.
The Minister said that his permission is not necessary in regard to Aer Lingus participating in joint venture operations with other airlines. Will the Minister allow Aer Lingus to exercise their commercial judgment in relation to any joint companies they may wish to form or shareholdings in other airlines?
The Deputy is expanding beyond the terms of my reply. I said that Aer Lingus, as part of their normal day to day operations, participate in joint ventures and that my approval is not required. However, I am a shareholder and my permission would be required for major decisions.
Will the Minister enlighten us on his attitude to the possibility of encouraging Aer Lingus to seek joint partnerships along the lines of SAS in relation to the three Scandinavian countries? In the light of developments in Europe, does he foresee a situation where there is a multinational airline within which Aer Lingus can participate?
That is a major policy decision. I am aware that the Austrian airlines have sold 90 per cent of the State shareholding and that the SAS share ownership of the Norway, Sweden and Denmark share. However, I have not made any request along those lines and I do not see any possibility in that regard in the near future. I realise that we are entering a different phase in European transport. British Airways bought Caledonian and they are starting a very aggressive transatlantic marketing programme. We must be subtle and keep our minds as open as possible in relation to all events.
Deputy Mitchell rose.
I am anxious to dispose of the Deputy's last question and I am sure he will co-operate with me in that regard.
Will the Minister accept, in the light of developments in Europe and the rest of the world, that only mega-carriers will survive? It is in our national interest to ensure that Aer Lingus expand beyond the 3.5 million home market.
There is a belief that only mega-carriers will survive but I do not subscribe to it. However, I realise that all carriers have to be very alert regarding the developments in the industry in the near future.
