asked the Minister for Tourism and Transport if he will make a statement in relation to the fleet requirements of Aer Lingus; if he will outline these requirements over the next five years; and the long term proposals which exist for financing those requirements.
Written Answers. - Air Lingus Fleet Requirements.
13.
Aer Lingus is currently engaged on a programme of fleet development in respect of its European fleet to cater for the expansion in traffic arising from the general liberalisation of European air transport, the increase in inbound tourism and the need to replace older aircraft in the fleet.
Aer Lingus has already taken delivery of two B737-300 aircraft. These aircraft were delivered in October-November, 1987 at a cost of $71.3 million. The company has, with Government approval, placed orders for:
—two B737-400 aircraft to be delivered next year at a cost of $71.2 million;
—four B737-500 aircraft to be delivered in 1990 at a cost of $108.5 million;
—two Fokker 50 aircraft to be delivered next year at a cost of $27.5 million.
In addition, Aer Lingus has submitted for Government approval proposals for the acquisition of three B737-400 aircraft, one B737-500 aircraft and two additional Fokker 50 aircraft to be delivered in the period up to 1991. These proposals are expected to cost $164.75 million. I expect the Government to take decisions on these aircraft shortly. Aer Lingus also holds options on four B737 aircraft for delivery in 1992 but proposals in this regard, particularly as regards B737 variant, have not yet been finalised by Aer Lingus. The proposals I have outlined cover the major elements of the Aer Lingus programme of development of its European fleet. Pending delivery of new aircraft Aer Lingus has leased in aircraft on a short term basis to cater for traffic in the peak. Aer Lingus expects to finance this programme of expenditure on commercial terms and without a requirement for additional equity. The programme will be financed from a combination of net profits after tax, depreciation funds, disposal of old aircraft and other surplus assets and from borrowings.
In relation to its current transatlantic fleet of three B747s, Aer Lingus does not expect to have to replace these aircraft before the mid-1990's. The company is, however, acquiring on a short term lease basis for summer 1989 a Lockhead L1011 Tristar to cater for general US-Ireland traffic growth in the peak. The company is at present examining the situation in relation to expansion beyond that period but has not yet finalised any proposals in that regard.