Dáil Éireann debate -
Thursday, 1 Jul 1993

Vol. 433 No. 3

Written Answers. - Purchase of 767 Aircraft by Aer Lingus.

Pat Cox

Question:

30 Mr. Cox asked the Minister for Transport, Energy and Communications the reason Aer Lingus recently purchased two 767 aircraft which it now proposes to dispose of in view of the statement in his briefing document to members of Dáil Éireann that these aircraft have higher unit costs of operation than larger long haul aircraft.

Minister for Transport, Energy and Communications (Mr. Cowen)

The configuration of the Aer Lingus/Aerlinte fleet is a commercial matter for the company to decide.

On 7 September, 1989 the Board of Aer Lingus endorsed a management recommendation to lease two Boeing 767-300ER aircraft for operation on the North Atlantic, and sought Government approval to proceed with the leases. The Government approved the proposal, subject to the conditions that there would be no recourse to the State for either equity or State guarantee of borrowing in relation to the aircraft. At that time Aer Lingus planned to operate services to Los Angeles. For commercial reasons, the company subsequently decided not to proceed with those plans.

In its recent review of strategy, Aer Lingus decided that in relation to its North Atlantic operations, services would be confined to New York and Boston. Aer Lingus is of the view that these points are best served by B747s as the B7667s have higher seat-mile costs than the B747, but lower aircraft-mile costs, making them suitable for long-range thin routes but relatively unsuitable for shorter routes with heavy traffic flows and low seat rates.

As the B767s are surplus to Aer Lingus requirements, the Company proposes to dispose of them as soon as possible.