Vol. 567 No. 2
81 Mr. P. Breen asked the Minister for Transport if Shannon Airport and its hinterland will be protected in discussions on an EU open skies policy; and if he will use his veto in discussions regarding proposed changes to the current bilateral agreement. [13882/03]
The next discussions on this topic will be at the Council of Transport Ministers on 5 and 6 June. The current indications are that the Council may seek to finalise the mandate being sought by the European Commission to negotiate an open aviation area agreement between the EU and the USA. I am currently reflecting on the position I should adopt at the Council on behalf of Ireland. The main issues which I must take into account are the ruling of the European Court of Justice last November, the impact on Shannon Airport and its hinterland, the impact on tourism of increased access to Ireland, the opportunities for Aer Lingus to increase its business on transatlantic routes and Ireland's wider relationship with Europe.
The current Government policy on Shannon Airport has been in place to assist the development of the airport. I am very much aware of the importance attached to transatlantic services at Shannon by business and tourism interests in the region. This will play an important part in my consideration of the issue and the House can be assured of my long-term support for Shannon Airport.
I have asked my officials to examine, with the assistance of the Office of the Attorney General, the basis on which the question of a negotiating mandate on this subject may be resolved at the Transport Council. The advice is not yet finalised, but I understand that as the mandate embraces issues of Community competence and issues in which member states retain their competence, it could be argued that the agreement of all member states may be legally necessary. However, this view may not be shared by the European Commission.
While it is important to clarify these issues, it is not realistic to contemplate that any member state would refuse to permit the other member states of the Union to engage in multilateral negotiations with the United States on a matter which they wish to pursue on a multilateral basis.
We need to bear in mind that the finding made last November did not affect Ireland. Clearly, the Commission is anxious to proceed with a new arrangement between the United States and the European Union, which could be detrimental to Shannon Airport if it is not handled properly by the Government. The Minister said he is anxious to move forward in terms of expanding transatlantic services. What plans does he have to expand those services on a year-round basis? That is the key issue for Shannon Airport. As regards balanced regional development, the people of the mid-west are positive about the issue. It is important to get the best possible deal for Shannon.
As regards the hub concept, there is a view in Brussels that Shannon Airport could be used as a hub for transatlantic flights, particularly now that the European Union is enlarging. Will the Government pursue that at EU level and ensure it is put on a statutory footing? Many promises were made in the past. The Minister will soon be appointed president of the Council of Transport Ministers and he will carry the flag. Shannon Airport would be an ideal hub. It does not have congested skies and it has the necessary infrastructure, air bridges and parking facilities. What does the Minister think of that concept?
As the Deputy knows, I come from the west.
The Minister keeps telling us that.
We will see when the roads and rail are built.
I keep reminding myself of that fact. The first airport I ever stood in as a young man was Shannon Airport. I assure the House it is a fantastic asset to the country.
It is.
I am strongly of the view that it has a great future.
If the Ennis bypass were built, it would be a great airport.
The bypass is on the way. Shannon Airport has a tremendous future. The hub concept the Deputy mentioned is a runner. I know the Deputy has felt strongly about that for some time. It is realistic to think of Shannon Airport as a hub between East and West in the context of new members of the European Union. I know the authorities in Shannon are actively looking at that and I will help them in any way I can.
It is worth pointing out that Aer Lingus has indicated to me that it would, given the right circumstances, commence new services on two new routes, possibly to the east and west coasts of the United States. The company proposes to commence a further two new routes with one additional aircraft, bringing a total of four new United States routes into operation. It tells me it could do that over a 12 month period. It is worth noting that Aer Lingus has put on offer to Shannon Airport substantial new business but, unfortunately, it is connected with the issue of the bilateral agreement. Perhaps Aer Lingus and the airport could discuss that further. Aer Lingus has also told me that it would like to co-chair with its United States partner, American Airways, to serve a range of other United States domestic points. That means the Aer Lingus flight code could serve those points on American Airways aircraft. In the longer term, Aer Lingus has indicated to me that it sees significant prospects for opening further direct routes.
It is clear there is a strong natural transatlantic market for Shannon Airport going forward. With the right support locally and nationally, a dynamic and efficient airport can move to the forefront of airports internationally. There is a lot of excitement in terms of Shannon Airport and there is a lot of new business. I look forward to working with Shannon to get that new business for the airport.
Aer Lingus is a small airline and we are a small country. US airlines do not have to travel into Ireland. The big carriers in Europe, such as Lufthansa, Air France and British Airways, could take over the European scene. Is there a danger in that regard? There is not any guarantee that Aer Lingus will get extra routes to other destinations, although it says it wants to get into 12 or more destinations. Will the Minister push the hub concept at European level? It would be a good move for Shannon Airport if the hub concept could be put on a statutory basis.
I will promote that at European level and during our Presidency. However, the hub concept is not based on a legal document, but on a commercial decision. A hub becomes a hub because airlines negotiate to fly in and out. I will work with Shannon Airport to achieve that.
What about our EU partners?
It is not a matter for them. They do not have any say in it. If we want to do business bringing flights from Russia into Shannon and on to the United States, we can do that. The EU does not have any say in that. However, I will work on the hub concept because the Deputy is right.
That concludes priority questions. We now move to ordinary questions.
