Vol. 418 No. 2
3 Mr. Yates asked the Minister for Tourism, Transport and Communications if it is intended to extend the two-airline agreement which was due to expire on 31 December, 1991, between Aer Lingus and Ryanair; and, if she will outline whether her views accord with those of her predecessor in this regard.
The two-airline policy to which the Deputy refers was introduced in 1989 for a period of three years to end 1992. I am satisfied that the policy is working effectively and that it should be maintained for the planned period. The policy will be reviewed shortly.
Am I to take it from what the Minister has said that she is giving a commitment to the House to maintain the two-airline policy? In the review to which she referred, is she aware that prior to Ryanair coming on stream there was a cartel between British Airways and Aer Lingus and that after Ryanair commenced operations passenger numbers doubled. To avoid predatory pricing which would push Ryanair out of business, it is in the national interest that both Aer Lingus and Ryanair, thrive and that the arrangements vis-à-vis Stansted and the regional airports be continued.
As I said in the reply, I am giving a commitment that the policy will continue to the end of the planned period. At present I am reviewing the policy and I will be in a position to make a decision on the matter very shortly.
Would the Minister agree that the future of regional airports is totally dependant on the operation of Ryanair? Ryanair are making substantial investment in new fleet and so on and in order to safeguard that investment as well as the regional airports it is very important that the Minister give a clear message to Ryanair that the two-airline policy will continue for a further three years.
Ryanair executives have come to see me in relation to this matter as well as to a number of other matters and they know that a decision will be made on his matter within the timeframe required for them to plan for the next three years.
