Vol. 516 No. 6
187 Mr. Stagg asked the Minister for Public Enterprise the reason she sanctioned an increase in excess of 20% on the maximum return fare on the Sligo-Dublin, Galway-Dublin and Kerry-Dublin air routes; her views on whether this increase will reduce the number of passengers using the routes; if she will reconsider the decision; and if she will make a statement on the matter. [8954/00]
The Deputy is referring to a recent increase in the maximum return fare on the three public service obligation routes operating between Dublin and Kerry, Galway and Sligo airports.
The terms under which these PSOs operate stipulate, inter alia, that the maximum fare may be increased in the event of an abnormal or unforeseen increase in cost factors for which the air carrier is not responsible. In this case, Aer Lingus sought the fare increase as a result of increased costs including airport charges and a rapid rise in the price of aviation fuel over the past year.
The Deputy, however, is incorrect in suggesting that the maximum return fare has been increased in excess of 20%. The return fare of IR£89 was originally agreed with Aer Lingus in 1998. This has now been increased by IR£8, representing an increase of 9%. The EU Commission was advised of this increase, notice of which was published in the EU Official Journal.
In line with increasing costs, Aer Lingus has, in fact, also increased all through fares to and from continental Europe by £10 return, with effect from 1 March this year, and a similar increase will shortly be applied to through fares to/from the UK.
