Dáil Éireann debate -
Wednesday, 12 Nov 1997

Vol. 482 No. 6

Written Answers. - TEAM Aer Lingus.

Proinsias De Rossa

Question:

25 Proinsias De Rossa asked the Minister for Public Enterprise if her approval has been sought for the reported efforts of Aer Lingus to sell a stake in its TEAM subsidiary; if she will give details of the proposals, if any, in this regard; if she has requested Aer Lingus to ensure that there will be full consultation with the employees and the unions regarding this change; and if she will make a statement on the matter. [18919/97]

Thomas P. Broughan

Question:

52 Mr. Broughan asked the Minister for Public Enterprise if a public competition or tender process is required before the sale of all or part of TEAM Aer Lingus can take place; and if she will make a statement on the matter. [18973/97]

Minister for Public Enterprise (Mrs. O'Rourke)

I propose to take Questions Nos. 25 and 52 together.

TEAM Aer Lingus is in the third year of a five year business plan designed to restore the company to viability on a phased basis. Though trading moderately well at present, the company's finances are delicately balanced and it continues to remain dependent on the Aer Lingus group for financial support.

TEAM is competing in a global market in which there is substantial overcapacity. This has led to increasingly competitive pressures on companies engaged in the international maintenance and overhaul industry, leading towards consolidation trends in the industry worldwide.

It is an objective of the current TEAM Aer Lingus five year business plan that TEAM would secure an external partner to ensure the long-term viability of the company.

While I am aware that TEAM Aer Lingus has been engaged in an exploratory process of identifying possible stretegic partners, no proposals have yet been made to me in that regard. Any such proposal will be considered by me on its merits, having regard to the interests of all parties.

I have been informed by Aer Lingus that trade unions representing staff in TEAM and members of the Workers' Participation Council were briefed by the Aer Lingus group chief executive at a meeting on 31 October 1997 on the background to the exploratory discussions which had taken place with possible interested parties.

At that meeting, it was indicated that this was the start of a consultation process with staff and their representatives and that they would be kept fully briefed in relation to the discussions now taking place.

A public competition or bidding mechanism is not required in the process of identifying a suitable partner for TEAM. When any commercial State company is engaged in such a process it is necessary, of course, that all appropriate and relevant potential partners are contacted.

My Department has been assured by Aer Lingus that it is fully aware of this requirement in the present instance.