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Dáil Éireann debate -
Wednesday, 6 Oct 1999

Vol. 508 No. 4

Written Answers. - Air Services.

Brendan Daly

Question:

130 Mr. Daly asked the Minister for Public Enterprise if her Department will fully investigate the withdrawal of an airline (details supplied) from Shannon; if her attention has been drawn to the fact that former employees of the company have not received their full entitlements and substantial amounts are due to Aer Rianta and others for services at Shannon while at the same time the airline is still licensed by the United Kingdom Civil Aviation Authority; if her attention has further been drawn to the deep concern in Shannon at the circumstances of the withdrawal of this airline and if she will make a statement on the matter. [19352/99]

I am always concerned when an airline offering services to or from any Irish airport withdraws those services.

Under EU regulations all airlines licensed in EEA countries – the 15 EU countries and Norway and Iceland – are free to operate on any route within the EEA. There are no longer any governmental controls on intra-EEA routes. The operation of any particular route is a matter for the commercial judgment of the carrier, subject only to the availability of slots at either end of the route and overall safety considerations.
AB Airlines Ltd. is a UK based airline and is licenced to operate by the UK Civil Aviation Authority CAA. In accordance with EU regulations the airline did not need any permission from my Department to operate routes between the UK and Ireland. As the licensing authority, the UK CAA is responsible for monitoring the financial circumstances of AB Airlines. My Department would have no function in this regard and would have no knowledge of the ongoing financial situation of the company.
However, on becoming aware of the imminent withdrawal of AB Airlines's Shannon-London Gatwick service, my Department made inquiries of the UK Civil Aviation Authority and of the court appointed administrators BDO Stoy Hayward. For reasons of confidentiality, neither body was able to give my officials detailed information as to the difficulties facing the company at that time.
According to the most recent information available to my Department from the administrators, AB Airlines ceased scheduled operations on 8 September and ceased all operations on 22 September 1999.
Any moneys which may be owing by AB Airlines are matters between the company's creditors and the administrators. I understand that under UK law a meeting of all creditors must be called before 30 October 1999.
I understand that Aer Rianta set up a taskforce to look after passengers who had made advance bookings on AB Airlines Shannon-London Gatwick service and that most of the passengers who were discommoded were accommodated on other Shannon-London services.

Ulick Burke

Question:

131 Mr. U. Burke asked the Minister for Public Enterprise if she will provide financial support for the provision of the proposed new airport for Galway city and county at Oranmore; if she will provide the £3 million already allocated for the upgrading of Carnmore Airport; and if she will make a statement of her intentions to provide adequate air transport service for Galway as the fastest growing city in Europe. [19353/99]

I have received no proposal regarding a new airport for Galway city and county at Oranmore. However, the long-standing policy of my Department as regards the development of aviation facilities is that private interests may provide and develop airports in whatever location they wish, provided the requirements of the Irish Aviation Authority are met and planning permission is secured. It is, of course, for the promoters to satisfy themselves that an airport can function as a viable commercial entity.

As the Deputy will be aware, Galway Airport was allocated a grant of £3.1million last year towards the cost of widening and extending its runway. This funding was allocated for this particular project. The provision of funding for a different project at a different location would be a matter for consideration by me and eventual decision by the Government.
As regards the provision of adequate air transport services for Galway, the operation of any particular route is a matter for the commercial judgment of an airline. Under EU regulations, all EU licensed airlines are free to operate on any route within the EU. There are no longer any Government controls on intra-EU routes.
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