Dáil Éireann debate -
Wednesday, 22 Jun 1994

Vol. 444 No. 2

Written Answers. - Aviation Policy.

Ivan Yates

Question:

48 Mr. Yates asked the Minister for Transport, Energy and Communications his specific short term priorities in respect of aviation policy in this country, particularly in the context of the financial viability of the airline business; and if he will make a statement on the matter.

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

The Government's aviation policy and the background against which it has been framed is set out in the document "Irish Aviation Policy" which was published by my Department in February, 1994. The key objectives of the policy are clearly laid out in the document, which acknowledges that Government policies to realise these objectives have been continually adapted to take account of changes in the international aviation market. Further changes will be necessary from time to time but these will be implemented within the current consistent policy framework which should allow Irish operators in the aviation sector to plan ahead with some certainly.

In summary, the Government, in adapting and developing its policy framework, will ensure that it is sufficiently flexible to cater for the continually changing needs of the industry's customers and the range of services provided to meet these needs. It will also seek to ensure that the policy provides opportunities for public and private sector operators to earn an adequate return on capital invested, both as a reward for risk taking and to finance the continuous increments in investment needed to maintain the competitiveness of the industry vis-à-vis our competitors.

I have two distinct roles in relation to the sector — one as regulator and one as shareholder for the major players in the sector. My role as regulator is governed by the single market regulations which provide greater freedom and opportunity for EC licensed airlines in relation to fares, access and establishment. My immediate priority in this regard is to push at EC level for a follow-up to the suggestions of theComite des Sages report to the EC Commission regarding measures to improve the competitiveness of European airlines.

In my shareholder role, my immediate priority is to ensure the return to financial stability of Aer Lingus through effective implementation of the key objectives in the company's strategy for the future.

My other short term priorities include the introduction of an essential air services programme within Ireland to guarantee a minimum level of service to the regions served by the six privately owned regional airports; examination of proposals to seek extra traffic opportunities for Shannon airport; ensuring that the three State airports are cost competitive and have in place a programme to provide adequate, high quality infrastructure to meet projected demands; promoting direct job and wealth creation in the Irish airline and aviation industry as a whole through opening up new market opportunities for Irish based aviation operators, both in the public and private sector. In this connection, air transport negotiations have been sought or are underway with a number of countries including Armenia, China, Iran, Japan, Republic of Korea, Kazakhstan, Latvia, Lithuania and Saudi Arabia. In line with the Government's aviation policy, the scope of these bilateral negotiations extends beyond mere traffic rights to actively seeking business opportunities for Irish operators across the whole spectrum of the aviation sector.