Vol. 451 No. 3
7 Mr. Killeen asked the Minister for Transport, Energy and Communications the actions, if any, he has taken to meet the priority targets of the Shannon Task Force of finding new sources of inbound tourism business and attracting a new scheduled service from the United States of America market. [6496/95]
The action taken to meet the priority targets of the Shannon Task Force is that a new marketing body for the airport, Shannon Airport Marketing, was established with effect from 1 October 1994. This was the central recommendation made by the task force, and it was taken on board by my predecessor.
While finding new sources of inbound tourism business is not a primary function of Shannon Airport Marketing — its task is to stimulate traffic growth at Shannon — the activities of the new body will result in new business opportunities for Shannon, including new sources of inbound tourism. As recommended by the Shannon Task Force, the two main elements of Shannon Airport Marketing are: first, the marketing of Shannon Airport has been separated from the promotion of tourism in the region; and second, the foundation for the new marketing body is the former marketing joint venture between Aer Rianta and Shannon Development. Shannon Airport Marketing has brought together in a single entity and put into a sharper and more coherent focus the former roles and expertise of Aer Rianta and Shannon Development in marketing the airport.
The provision of transatlantic air services between Ireland and the US is governed by the Ireland/US Air Transport Agreement. In accordance with the terms of that agreement, designated airlines of both countries are free to operate air services on specified routes between the two countries. There are no limitations on the capacity which may be offered by airlines on such services.
In relation to scheduled air services, Irish airlines currently enjoy access rights to four US points — New York, Boston, Chicago and Los Angeles— while US airlines may serve Ireland from any US point. The question of whether an airline wishes to exercise its right to operate on any specific route is, however, a matter for decision by such airline on the basis of its commercial judgment. Shannon Airport Marketing's mandate is to grow the traffic at Shannon through vigorous promotion of the airport in overseas markets, including the US. The overseas staff of the unit includes a full-time member located in New York.
As I informed the Deputy in reply to his question of 15 March 1995, Aer Rianta estimates that the capacity for 1995 on transatlantic routes will be in excess of one million seats. Bord Fáilte figures indicate that the total number of passengers carried on these routes in 1994 was 804,000. There is no capacity problem on this route. At the same time, I should stress that attracting a new scheduled operator from a North American gateway is a priority preoccupation of Shannon Airport Marketing. The marketing body is in regular contact with the major North American airlines to achieve this objective.
Given the controversy surrounding the decision to remove the Shannon stop-over some years ago, has the Minister assessed the impact of that change in policy on Shannon Airport?
Terminal traffic at Shannon Airport increased by 4 per cent in 1994. This is the traffic which provides the spin-off for hotels in the mid-west region and which underpins tourism, employment and development in the entire region. The volume of American traffic increased by 8 per cent while European traffic increased by 16 per cent over the same period.
What were the figures for Dublin?
As expected, transit traffic at Shannon, that is traffic passing through the airport, decreased in 1994 due primarily to the new direct Aeroflot flights between Moscow and New York. I have a particular interest in Shannon Airport and I recently announced an investment package for it. I fully recognise the dependence of the west and mid-west regions on a strong and viable airport in Shannon. The investment programme was warmly welcomed by people in the area. I am also very interested in ensuring that the hubbing arrangement between Aeroflot and Shannon is enhanced and encouraged and whatever funds are needed to facilitate its successful implementation will be provided by Aer Rianta.
Am I correct in interpreting the Minister's reply to mean that the policy change has been reasonably successful?
Shannon is getting a small slice of the increase while Dublin is getting the bulk of it.
Given the controversy surrounding the policy change and the views of the Minister's party on it when in Opposition —they are not very close to the ones being espoused by him today — one would have thought that a substantial assessment of the change would be carried out to ascertain whether it has been successful for the country. The question refers to new carriers. The only United States carrier operating scheduled flights to Ireland is Delta Airlines. This has been the position for up to seven years. The Minister said that these airlines may fly into Ireland and I would like to know if he has had any meetings with the chief executives of major United States airlines with a view to getting additional business. We will not get the business any other way.
I am not interested in getting involved in the history behind the decision to change the Shannon stop-over. I have to look to the future and everybody at Shannon is co-operating in an effort to work the new arrangements that are in place. We must make the best of what we have. From the information available to me, substantial progress has been made and I acknowledge that.
On the point made by Deputy Molloy, Shannon has experienced growth but not to the same extent as that achieved nationally. There are many positive aspects to the developments at Shannon on which we can build for the future and I intend to support and encourage these and to make available whatever facilities are necessary to ensure that Shannon reaches its full potential.
I accept the Deputy's point about the need for meetings with other airlines. An initiative is needed in this regard and I have instructed my officials to prepare one on my behalf and if ministerial intervention is needed at the appropriate time I will be available.
Will the Minister indicate the effect of yesterday's Government decision on Mullaghmore on the promotion of Shannon Airport?
The Deputy is broadening the scope of the question.
It has to do with the Shannon region.
If the Deputy tables a question on that matter I will give him a full and detailed reply.
Regarding the importance of generating tourist traffic in the south and west, as the Minister signalled relatively low increases in traffic from Europe and, in particular from North America, is he satisfied that the marketing focus is as exact as it should be? Is he satisfied that there is not duplication in that focus? Is he also satisfied that, particularly in regard to the European market, Shannon, Cork and other regional airports are not vying with each other seeking the same market? Does the Department have plans to regulate and co-ordinate marketing activities for those airports, particularly in the context of Europe?
Systems are in place to market Ireland and our airports and to ensure we achieve the greatest growth possible in tourism. I am satisfied that there is excellent co-ordination between the various authorities in that regard. The matter is kept under constant review, in the immediate future I intend to conduct a review to assess how well the system is working and I will make any changes that are necessary.
Is the Minister aware that when we put questions to the Minister for Tourism and Trade about developing new markets and access from the North American continent to Ireland he refers us to the Minister for Transport, Energy and Communications? We now have an opportunity to put those questions to him. Is he aware that there is great dissatisfaction at the lack air of transport facilities to Ireland from the southern states of North America where there is a large Irish population? To holiday in Ireland those people must take a roundabout journey through London or other airports at additional cost.
The tourism industry is frustrated at the lack of response from the Government to open up the market in that part of North America. We visit those Irish groups on St. Patrick's Day every year and then forget about them. They must go to great expense and take long tedious journeys to come here on holidays. Surely we can treat them better than that.
I accept the validity of Deputy Molloy's arguments. The matter is being treated as a priority in my Department. It is very off-putting for people in those parts of the United States to have to take such a circuitous route to holiday in Ireland, we are losing a considerable amount of tourist traffic as a result. While we are subject to international rules and regulations, there is room for improvement in this area. I asked my management team, the executive of Aer Lingus and other airlines to explore the opportunities that exist in this area and to put in place a satisfactory scheme to secure more tourist traffic from those areas.
The Minister will be aware that the British Airways promotion from several locations in the United States over London allows many of those people access to Ireland, mainly through Dublin. What action does he propose to take to ensure better access for those people to, for example, Cork, Shannon and Knock?
I am aware of the Deputy's interest in this matter, he has contacted my Department on a number of occasions in this regard. I will keep the Deputy informed of the developments that arise from our discussions.
I am pleased the Minister is willing to review the co-ordinated effort in marketing our airports in the Southern Hemisphere. It is my understanding that Irish airports are undercutting each other, particularly in the European market, to gain access to business. As such activity will not expand the scope of people visiting our country, will the Minister undertake to review the matter as soon as possible?
I have nothing further to add. I am conscious of the difficulties that exist. They are not serious, but they must be addressed. I am also conscious of the opportunities that can be exploited and I use the mechanisms available to me to correct the inefficiencies in the system. In general, the system is working well. There has been enormous growth in tourist traffic through our airports. My primary concern is to ensure that Aer Rianta, who play a major role in this area, continues to examine its costs structures and make it easier and cheaper for airlines to use our airports, making access to Ireland cheaper.
