Dáil Éireann debate -
Thursday, 9 Feb 1995

Vol. 448 No. 8

Written Answers. - Air Fares.

Robert Molloy

Question:

16 Mr. Molloy asked the Minister for Tourism and Trade his views on the effect the high level of air fares on routes between Ireland and the United States of America and between Ireland and Continental Europe is having on the development of the tourism industry; if his Department has consulted with the Department of Transport, Energy and Communications in the matter; and if he will make a statement on the matter. [2927/95]

Liz O'Donnell

Question:

18 Ms O'Donnell asked the Minister for Tourism and Trade his views on the effect the high level of air fares on routes between Ireland and the United States of America and between Ireland and continental Europe is having on the development of the tourism industry; if his Department has consulted with the Department of Transport, Energy and Communications in the matter; and if he will make a statement on the matter. [2928/95]

Minister for Tourism and Trade (Mr. E. Kenny)

I propose to take Questions Nos. 16 and 18 together.

The matter of flights and air fares are a matter in the first instance for the Minister for Transport, Energy and Communications. 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 and from Ireland, airlines serving Ireland are free to determine air fares in accordance with their own commercial judgment, subject to certain safeguards.

From a tourism perspective I am, of course, concerned that air fares to Ireland should be competitive. One of the key corporate objectives of my Department, in seeking to contribute to further growth in tourism, is to develop more competitive, regular and good quality access links with our markets. Considerable improvements have taken place in recent years in access to Ireland, particularly from the UK and continental Europe and this is reflected in the growth in passenger numbers from these markets. But there is still scope for further improvements, especially from Europe, just as there remains the compelling need to constantly review access capacity on the trans-Atlantic corridor, given the Government's and the tourism sector's heavy marketing investment in the US during 1994 and this year. The last thing we want to do is to create consumer, that is high-spend, holiday-maker, demand and be unable to service it with adequate direct capacity.

Bearing these considerations in mind, I intend to maintain an open and constructive dialogue with the Minister for Transport, Energy and Communications throughout the year. As I recently highlighted at the Tourism Council, my objective will be to encourage further improvements in, and liberalisation of, our access transport arrangements, particularly those relating to aviation.