Vol. 543 No. 3
87 Mr. Gregory asked the Minister for Public Enterprise her plans to ensure that necessary financial support is made available to Aer Lingus to overcome its difficulties arising from the atrocities of 11 September 2001; and if she will make a statement on the matter. [27219/01]
I am totally focused on the task of securing the future of Aer Lingus with as many sustainable jobs as possible. The first step in that process is implementing the survival plan. Aer Lingus indicated last week that through the sale of aircraft and borrowings, £40 million will be made available to fund a redundancy programme which is a vital component of the survival plan. The company advises that this is the absolute maximum it can afford if the airline is to have any prospect of surviving. Union representatives and members were advised last week of the proposals and detailed information was issued to all staff on Monday, 5 November 2001. I understand that engagement has commenced between management and unions on all aspects of the survival plan. In addition, it is clear that access by Aer Lingus to external funds would greatly support the company's survival plan, particularly in order to strengthen its balance sheet.
That is why the Government, taking account of the EU position, has decided in principle that, provided the survival plan is rapidly agreed and implemented in all its essential aspects, it will facilitate private sector interests in an investment in Aer Lingus to provide a source of funding to support the plan. The Government also decided that it should be open to the staff of Aer Lingus to also invest further in the airline. The Government has made no decision as to the size of shareholding which could be the subject of an investment by the private sector. Specifically in relation to the events of 11 September and the horizontal emergency aid agreed by the Transport Council on 16 October for all European airlines, my Department has written to Irish airlines outlining the basis for compensation and the criteria to be used in applying for such compensation. Obviously, Aer Lingus will be a major beneficiary as it is the only Irish airline operating on the transatlantic route. However, such compensation will result in a relatively small amount of cash for Aer Lingus in the context of the current crisis.
I still believe the compensation measures for all airlines for the four-day closure of US airspace is minimalist and insufficient given the impact of the terrorist attacks, particularly when one takes account of the US aid package. I will continue to press for an extension of this measure. On the bigger question of investment in Aer Lingus, my officials are staying in contact with the European Commission. Last week, the Taoiseach and I met representatives of ICTU for a discussion on the Aer Lingus survival plan and the urgency of its implementation. The national implementation body of the PPF has also met ICTU on a number of occasions in the matter. I have also had three recent meetings with the central representative committee of the Aer Lingus unions. We have a difficult and urgent task. I want to get on with that task to ensure the survival of this company.
