Dáil Éireann Debate, Thursday - 26 October 2006
52 Mr. Connaughton asked the Minister for Arts, Sport and Tourism if his Department has considered the implications for the tourism industry of the privatisation of Aer Lingus; and if he will make a statement on the matter. [34874/06]
View answerThe Government believes that Ireland's strategic interest in aviation is best served by the provision of regular, safe, cost-effective and competitive air services linking the country to key business and tourism markets around the world. The strategic aim in selling a majority of the Government's shares in Aer Lingus is to ensure that the company has sufficient resources, over the long-term, to enable it to compete successfully, to develop its business as market opportunities emerge and to ensure that it has the strength in its balance sheet to withstand the industry downturns and external shocks that are recognised features of the aviation industry. Through the IPO, Aer Lingus raised approx. €400m to fund its expansion based business plan to meet these objectives.
Competitive and convenient air access is an important element of Ireland's tourism strategy. A competitive aviation market helps to drive down the cost of air travel and benefits Ireland as a tourism destination. My Department was involved in the inter-Departmental group, which considered the option of an Aer Lingus flotation, and brought a tourism policy perspective to bear in the deliberations of that group.
