Ivor Callely
Question:176 Mr. Callely asked the Minister for Transport, Energy and Communications the likely development of Aer Lingus over the next decade; and if he will make a statement on the matter. [14181/95]
Written Answers. - Development of Aer Lingus,
Aer Lingus is currently in the final year of a three year restructuring programme which is designed to restore the company to financial viability. This programme included a requirement to achieve a substantial reduction in Aer Lingus' cost base and involves a concentration on the core airline business. The immediate task of Aer Lingus is to consolidate and build on the achievements to date.
Long-term forecasts, particularly in a cyclical industry such as air transport, are fraught with uncertainty. Aviation industry trends suggest to Aer Lingus the likelihood of steady growth in the foreseeable future in the airline's main markets. Aer Lingus intends to participate prudently in this growth both in its existing markets and in new market opportunities where these are commercially viable. Bearing in mind the severity of the financial difficulties from which the airline is now emerging, however, I will encourage Aer Lingus to continue to develop the competitiveness of its cost structures throughout its operations.