I congratulate the Minister on his appointment as Minister for Transport and wish him every success.
As a new Deputy for County Clare who takes pride in our international airport at Shannon, I have to say that the Government's record of dealing with aviation issues over the past five years is nothing short of a disaster. The events of 11 September last cannot be blamed for the problems of Aer Lingus, and Shannon Airport should not be used as a sacrificial lamb. In the Shannon region we have a valuable asset which must not be used as a pawn in any deals that emerge in the coming months.
Since its establishment in the 1940s, Shannon Airport has been a generator of opportunity and confidence. Shannon is called the airport of necessity because it was deliberately located where it was most needed in the national interest of generating opportunity for an area that was economically barren. The airport is a success story of which the nation can be proud. It is essential for the success of the region and is of future paramount importance for the growth of tourism in the mid-west region.
The Minister may be aware of proposals from Aer Lingus management that as and from 27 October next both direct flights to New York and Los Angeles flights will originate and terminate at Dublin Airport. These flights operate seven days a week and are the only direct transatlantic service on the transatlantic route, that is, the Shannon-JFK route. With tourism numbers down by 21%, the change in this service could spell disaster for the Shannon region. Shannon airport has enjoyed a very special relationship with Aer Lingus on the transatlantic route. Aer Lingus has been the cornerstone of Shannon and we want to keep it this way for the future.
Rerouting this service will have a very negative impact on the region, which will affect about 280 transatlantic cabin crew who are based in Shannon. About 150 of these are married and live locally with their families. This will also probably mean job losses in the Shannon region. It will also affect passenger numbers at the airport as Aer Lingus claims that first class business out of Shannon is not profitable. Aer Lingus cannot cope with first class traffic out of Dublin and first class passengers are three times more profitable than economy passengers. This will also affect overnight bed numbers in the region. This is why the Hotels Federation is up in arms on this issue. There must be concern that the Aer Rianta catering service at Shannon will not now be available out of Shannon and this business will be transferred to Dublin. This will have a severe economic impact on in-flight catering especially given that Aer Lingus is now looking for a survival plan.
Are there further plans to reduce transatlantic services out of Shannon, particularly the Boston route? It is widely rumoured that the bilateral agreement will be up for negotiation later this year or early next year. Is that linked to the reduction in direct air services? The current bilateral agreement is a 50-50 arrangement. If all services are re-routed through Dublin, the long-term objective must be to change the bilateral agreement. Either way, is it up for negotiation?
Fine Gael believes in protecting the needs of the entire nation and the Government. We ask the Minister to join us in ensuring a vibrant rural economy with a strong airline. The country would be much better off as a result. I ask the Minister to earnestly consider developing Shannon to its full potential. At present the Government has no vision for our international airport.