Vol. 569 No. 3
359 Mr. F. McGrath asked the Minister for Transport if he will seriously reconsider his intention to authorise the building of a private independent terminal at Dublin Airport and to break up the Aer Rianta group; and the reason for ign oring reputable reports commissioned by the Government which advise against such plans. [17427/03]
360 Mr. F. McGrath asked the Minister for Transport if he will not break up Aer Rianta; and if he will listen to the views of the experts and the trade unions on this important national issue. [17428/03]
I propose to answer Questions Nos. 359 and 360 together.
It is my general policy that the three State airports should be in a position to provide cost-competitive and appropriate infrastructure to meet the current and prospective needs of users consistent with a commercial mandate.
There are, of course, two main issues in the programme for Government relating to the future of Aer Rianta and the three State airports. These are the proposals concerning greater autonomy and independence for Shannon and Cork airports and the commitment to examine proposals for a new independent terminal at Dublin Airport and to progress such proposals if the evidence suggests that such a terminal will deliver significant benefits.
As regards the concept of a second, independently owned terminal at Dublin Airport, I am aware that the general thrust of a consultant's report in 1999 by Warburg Dillon Read, based on a very brief review of the issue, was negative. I sought expressions of interest from the market in relation to this issue last autumn and 13 responses were received from a range of national and international companies and consortia. The panel of experts that considered those expressions of interest concluded in its report of February this year that such a terminal is both operationally and technically feasible.
Compared to four years ago, the landscape for civil aviation has changed dramatically with the slowdown of the world economy that began in 2000, events such as the attacks in the US on 11 September 2001 and, more recently, the war in Iraq and the SARS outbreak. This process of change, which is global in nature, will continue.
It is, therefore, not only prudent but necessary that we look afresh at our structures and organisations involved in the aviation sector to ensure that we are equipped to deal with the challenges facing us in the changed, and still changing, environment.
My Department is currently finalising a process of consultation with relevant interested parties and stake holders including Aer Rianta and the group of unions in the company, in respect of these two main issues in the programme for Government. It is my intention to continue discussions at Government on both these major initiatives as soon as possible following this consultation process.
361 Mr. P. Breen asked the Minister for Transport if he will consider a travel tax rebate on all internal flights between Shannon and Dublin to facilitate existing services and to attract new services, particularly for the business and tourism sector; and if he will make a statement on the matter. [17447/03]
Since no Government tax is imposed on air travel in Ireland I assume the Deputy is referring to the airport charges levied by Aer Rianta on airlines using the State airports.
The determination of the maximum levels of airport charges that may be levied by Aer Rianta is a matter for the Commission for Aviation Regulation, which acts on an independent statutory basis as provided for under the Aviation Regulation Act 2001.
The manner in which Aer Rianta levies airport charges at the three State airports is a matter for the company subject to compliance with the commission's determination. As the Deputy is aware, Aer Rianta has a statutory responsibility to operate on a fully commercial basis.
Aer Rianta operates incentive schemes to promote the development of new routes at the three State airports. The new route incentive scheme for the current year at Shannon airport offers carriers significant reductions by way of discounts on the standard airport charges. The scheme covers the first five years of operation of a new route offering a 100% discount in the first year, that is, no airport charges are payable by the airline in the first year. It offers an 80% discount in year two, a 60% discount in year three, a 40% discount in year four and a 20% discount in year five. Thereafter, the standard Aer Rianta charges at Shannon Airport will apply.
The incentive scheme for new routes is subject to certain qualifying criteria and is operated by Aer Rianta in an open, transparent and non-discriminatory manner. In this regard, the Deputy will be aware that any proposal which might lead to discriminatory treatment between routes fperated within the European Union, including internal flights in Ireland, would run counter to EU competition law.
