Vol. 442 No. 7
3 Mr. M. McDowell asked the Minister for Transport, Energy and Communications if, in view of the recent statements of the Executive Chairman of Aer Lingus regarding the future of Aer Lingus flights into and out of Shannon Airport, he will make a statement on the matter of year round daily flights to and from Shannon and New York.
Operating schedules, route services and such matters are the day to day responsibility of the Aer Lingus board and management, having regard to relevant commercial and operational criteria. I have no function in these matters.
In seeking Government approval for its new transatlantic fleet, Aer Lingus informed my Department that the new fleet would allow the operation of a daily year round non-stop Shannon-New York service on a commercial basis, having regard to a combination of improved internal costs and more appropriate size, low lease costs, low cash operating costs and higher cargo capacity of the A330 aircraft.
On 12 January last the executive chairman announced a new daily year round non-stop Shannon-New York service. That service is due to commence on 1 June 1994. I have no indication from the executive chairman of any change in the proposals he announced on 12 January.
Surely the Minister's Department has an ongoing interest in whether the daily service from Shannon to New York is provided and he cannot tell the House that this is an operational matter for Aer Lingus only. Does he agree that the situation is being complicated by the emergence of Tower Air which proposes also to provide Shannon-US flights? How many planes will be stationed at Shannon to provide this daily service? Is he satisfied that steps have been taken to commence service on 1 June 1994? Will he indicate also whether he has had any communication with the executive chairman of Aer lingus on these matters and whether, notwithstanding the executive chairman's recent remarks, he has been reassured that the service is about to commence on schedule?
Unlike the former Taoiseach, Dr. Garret Fitzgerald, I do not make a hobby of remembering the operational routes of various aircraft and I cannot list them off the top of my head. I have outlined on numerous occasions the scheduling for the new Shannon-New York direct service. It will remain. I will reiterate the point I made in my reply: decisions on this matter are made on a commercial basis. Aer Lingus is being run as a commercial company. The decision to provide direct flights to and from Shannon and New York is a commercial decision and is not based on other criteria. That is the only way to run a business. I can assure the people in Shannon that the service will run on a daily basis. Under the old regime there was not a daily year round Shannon-New York flight.
The dynamics of the situation have changed. Deputy McDowell mentioned that Tower Air will fly into Shannon and this is to be welcomed. The more flights we have coming into Shannon, Dublin and Cork and anywhere else the better as that means more tourism and more revenue for the country. As one who espouses competition I am sure the Deputy welcomes that.
The service will remain on a commercial basis. It is there to stay. The cargo capacity of the A330 is far superior to the old Boeing 737 and allows for less than 50 per cent passenger capacity in off peak periods. With a lower cost base, with lower operational costs — the airbus uses one-third of the fuel used by the older Boeing 747s — it is a far better product. I had the pleasure of being on the inaugural flight and it is an excellent aeroplane. Aer Lingus will acquire three such planes.
The Deputy asked where they will be located and my earnest wish is that they will be in the air as much as possible. We do not want aircraft at airports. We have seen enough of that in the past. They will be managed and controlled from Shannon. They will be flying with full capacity making profits and securing the future of Aer Lingus.
I agree with the Minister's remarks about commerciality and I certainly agree with his remarks on having aircraft flying as often as possible. When they are not flying, for example, during maintenance and the employment activity connected with that, the question of where they are based is of significance to the employees at Shannon airport. In that context will he indicate whether he has had an intimation from Aer Lingus where they will be actually based?
That is an operational decision for the management of Aer Lingus. In the same way as the Deputy acknowledges the principle of commerciality in obtaining the aeroplanes in the first place, I presume he will be consistent and agree that the question of maintenance should be a commercial decision. That is an operational day-to-day matter in which I have no function. That is the situation. I hope that the former Leader of the Progressive Democrats will be happy with that response.
I merely asked the Minister whether he has sought any assurances on the level of aircraft maintenance that will be carried out at Shannon. I accept that it is a matter of operational activity from Aer Lingus's point of view, but has his Department sought any assurances on such employment?
The Deputy can be assured that in my conversations with the executive chairman of Aer Lingus I at all times seek to ensure that the potential of Shannon is exploited to the maximum extent possible. I do not get involved in the day-to-day operational decisions and that is the proper position for any responsible Minister to take. The problems in the airline have to be confronted and dealt with. The management is there to do the job and they are doing it quite well.
Pontius Pilate.
Order, the time for dealing with Priority Questions is exhausted. I can, however, deal with No. 5 in the name of Deputy Sargent in ordinary time.
