Vol. 545 No. 5
108 Ms O'Sullivan asked the Minister for Public Enterprise if she is considering extending public service obligation funding to the Shannon-Dublin route to provide early morning and late evening connecting flights; and if she will make a statement on the matter. [31060/01]
As the Deputy is aware, Aer Lingus announced a range of cutbacks as part of its survival plan which is aimed at addressing the difficult situation facing the company as a result of the dramatic downturn in the global aviation market. Unfortunately, the current crisis does not respect or protect any particular region or service and the Shannon-Dublin route which is operated by Aer Lingus was a casualty of the post 11 September situation with the cancellation of some flights and reduced services on others.
The PSO regime is governed by EU Council Regulation 2408/92 and the primary purpose of a PSO is to provide air services for people in peripheral or development regions or on thin routes to regional airports where it is not viable for air carriers to provide such services on a commercial basis. In such cases, member states may, with EU Commission approval, establish a PSO on the route and compensate air carriers for losses incurred in operating the route.
The Shannon-Dublin route is still being serviced by Aer Lingus on a commercial basis albeit on a reduced frequency. I expect that when the financial position of the company improves and the aviation market recovers generally, Aer Lingus and other airlines will again review opportunities for re-establishing services which have been lost or reduced in the aftermath of 11 September.
109 Ms Clune asked the Minister for Public Enterprise her proposals to ensure the development of further air routes out of Cork Airport; and if she will make a statement on the matter. [31061/01]
Following the dramatic downturn in the global aviation sector as a result of the terrorist attacks in the US on 11 September, I requested Aer Rianta to consider initiatives to sustain and grow traffic at the three State airports. Aer Rianta responded positively to my request by offering a range of new incentives, commencing on 1 October 2001, to airlines which launch new routes into Dublin, Shannon and Cork Airports. The company improved its incentive schemes at Shannon and Cork by increasing the period for zero airport charges for new routes from three to four years. The company has also invited proposals for the provision of new domestic and international air services into the State airports, including Cork Airport, and is prepared to provide an attractive package of support to the proposal that is deemed most advantageous in terms of the range and mix of services, the development of the airports and the impact on the regions. In addition, Aer Rianta will provide marketing support for route development promotional activities. I welcome these initiatives by Aer Rianta. They are intended to help reduce the impact of the current global aviation downturn on traffic at the State airports, including Cork Airport, and to boost the Irish aviation and tourism sectors in the months and years ahead.
As the Deputy will also be aware, the inter-departmental group which was established recently under the aegis of the Department of the Taoiseach is seeking to identify possibilities for encouraging and generating additional travel by air, increasing the flow of tourists to Ireland and countering the adverse affects of the terrorist incidents in the US. A recent interim report from that group suggested, inter alia, that Aer Rianta develop appropriate strategies to increase traffic through Shannon and Cork with a view to implementation by next year's tourist season. Aer Rianta has now responded on the various suggestions put forward in the interim report and the company's response is now the subject of further consideration by the inter-departmental group.
