Phil Hogan
Question:5 Mr. Hogan asked the Minister for Transport, Energy and Communications the future financial performance of Dublin and Shannon airports in the context of the new transatlantic policy framework.
Ceisteanna—Questions. Oral Answers. - Transatlantic Air Policy.
I am satisfied that the new framework for transatlantic operations will result in traffic increases generally and will have a positive effect on Dublin and Shannon airports.
Direct flights to the US from both airports can now be marketed. The new arrangements will lead to increased transatlantic traffic at both airports and will accordingly boost their respective financial performances.
Transatlantic traffic for the two airports in 1993 and projected for 1994 are as follows:
|
Shannon |
Dublin |
|
|
1993 |
392,000 |
317,000 |
|
1994 |
411,000 |
370,000 |
|
% Increase |
5 |
17 |
There will also be increased investment at both Dublin and Shannon airports to service the transatlantic operations. The new regime will result in spin-off opportunities for car hire and other companies based at the airports.
The Minister indicated that the new transatlantic arrangements will have a positive effect on the two airports, particularly Shannon. A number of people, particularly those in SRS and Aer Turas, are concerned about the matter referred to in his reply. They find it difficult to believe that these arrangements could have a positive impact on their livelihood, particularly as it was not part of the original Cahill plan to sell off these companies. Will the Minister give a guarantee that the US pre-immigration facility will remain at Shannon? Is the Minister satisfied with Aer Lingus projections that there will be sufficient Ireland-US traffic to justify a daily Dublin-New York service and a daily Shannon-New York service during the off season?
Before replying I would like to welcome Deputy Hogan to the Front Bench of Fine Gael and I look forward to constructive tussels with him over the months and years ahead.
The disposal of non-core assets is an integral part of the Cahill plan. As part of the recovery process the question of equity injection, cost reduction and disposal of non-core assets is part of an integrated plan that is necessary to bring viability to the company. Pre-immigration inspection facilities are available at Shannon having been negotiated successfully by officials in my Department. Similar facilities are now available in Dublin. This will play a part in boosting transatlantic traffic, particularly from UK regional airports to Dublin and on to New York. The dynamics of the situation have changed considerably from this time last year. I was in the United States recently and was informed by the Aer Lingus North American operation in New York servicing North America, that as a result of improved and increased marketing opportunities for which funding has been made available, there is the prospect of a 21 per cent increase in traffic this year.
Will the Minister give an assurance that the pre-immigration facility at Shanon will remain there? Will he also answer the question on the service during the off season? A report was prepared by the Shannon Task Force in respect of the Shannon area as part of the ongoing deliberations on Aer Lingus and I should like the Minister to give some indication of the contents of that report and whether he proposes to publish it so that we can have some idea of what the task force had in mind for the area. Will the Minister indicate if there will be increased business for the Shannon area vis-à-vis Aeroflot, who have proposals in respect of that airport?
On the off season, I can give an assurance that, based on commercial decisions, all year round flights are proposed for Shannon. The Airbus A330's have a larger cargo facility than the present transatlantic fleet and, therefore, it is economic, by reason of the cargo issue alone, notwithstanding the increased passengers, to provide an all year round service to Shannon. That was widely welcomed and it underpinned my commitment to ensure we achieved a solution which took account of all the stake holders in the aviation business and in the airports affected. I stated that we have successfully negotiated, despite great difficulty and some threat, the retention of the pre-immigration facility for Shannon and a similar facility for Dublin.
The question of the Shannon Task Force is a separate issue. I have the report and I am considering a response and putting forward policy options. The central thrust of the report — I am grateful to the task force for its excellent work — is that it is up to all the interests in the Shannon region, tourism, travel and aviation interests, to come together in a coherent and integrated fashion to maximise the potential of the airport and the spin-off activity that will emanate from such an effort.
Aeroflot, is a customer in Shannon. Any proposals by that company will be considered by my Department and if any opportunities which are consistent with our aviation policy arise we can pursue them.