Vol. 444 No. 2
12 Mr. Deenihan asked the Minister for Transport, Energy and Communications the measures, if any, he is taking to reduce access fares to Ireland in order to boost our tourism industry; and if he will make a statement on the matter.
As part of the liberalisation process of recent years, the role of Governments in controlling and regulating air fares has been progressively reduced. Under European Union rules and the Ireland-US Air Transport Agreement, which apply to most air services to-from Ireland, airlines serving Ireland are free to determine air fares in accordance with their own commercial judgment, subject to certain safeguards. I have no statutory function in relation to the determining of fares for services provided by ferry operators. This is a matter solely for the commercial judgment of individual operators.
Will the Minister agree that access costs are still a major barrier to growth in the tourism industry? For example, a flight from San Francisco to Dublin during the high season costs up to $900 whereas a flight from San Francisco to London by Leisure Air costs $541. The incentive is there to travel through other destinations, and London is certainly more competitive than Dublin. I am sure the Minister agrees that people spend some time in the place at which they arrive. Surely, as Minister responsible for Aer Rianta, the Minister has control over landing costs here which are way out of line with other airports such as Luton. Will the Minister comment on landing costs which form part of the access costs?
Landing costs are reasonably competitive with those in other airports — the Deputy picked one airport that is more favourable than our State airports. Aer Rianta, in a recent marketing initiative, sought in certain circumstances to reduce landing charges to increase traffic and I understand that initiative has been reasonably successful. If the Deputy puts down a separate question on that matter I will give him details on it.
On the common rating, realistically Aer Lingus is the only Irish carrier for the purposes of common rating because of its network of routes and its access to Heathrow. However, common rating is a matter for the airlines to decide. The pricing policy of Aer Lingus must be in line with its commercial mandate and at the same time it must try to attract as many passengers as possible. The rationalisation, in seeking to reduce the cost structure, has provided much more competitive access fares, particularly on the New York route. The number of people travelling to Dublin and Shannon by Aer Lingus on transatlantic routes increased by more than 21 per cent up to June this year. That is a significant increase considering that in previous years the numbers were static or declining. Progress is being made, but we must not become complacent. Cheaper access fares contribute to the suitability of Ireland as a tourist destination. These are matters we will continue to consider, but in the main they are management matters for the airline to decide. As regards ferries, again these are matters for the operators to decide.
