Air Services Provision

Dáil Éireann Debate, Wednesday - 18 September 2013

Wednesday, 18 September 2013

Questions (1631)

Andrew Doyle

Question:

1631. Deputy Andrew Doyle asked the Minister for Transport, Tourism and Sport the effects on the Irish aviation market if the merger of American Airlines and US Airways goes ahead in the United States; if he believes that current competition law and or an anti-trust case taken against the merger in the United States, creating the world's largest airline, would have been beneficial for Irish consumers or would have had a negative impact, given that both airlines currently operate routes from Irish airports; if his attention has been drawn to a European Commission decision regarding this proposed merger; and if he will make a statement on the matter. [37367/13]

Written answers

Minister for Transport, Tourism and Sport (Deputy Leo Varadkar)

The air transport market between Ireland and North America is a highly liberalised and competitive market. The fact that all four of the big US international carriers currently fly into Ireland is testament to this. The market has also grown significantly in 2013 with tourist visits to Ireland from North America up over 18% so far this year and overall seat capacity up over 25%.

The proposed merger was notified to the European Commission for clearance under the Mergers Regulation. Before clearing the merger the Commission closely examined the transatlantic air services market, including the Ireland-US market.

The Commission found only one route from Heathrow to Philadelphia where a merger of the two airlines would be potentially problematic, and the merger was cleared by the Commission following commitments made by the airlines to encourage competition on that route post-merger.

The matter is now for the US authorities to determine. I understand the US Department of Justice case focuses largely on concerns regarding the US domestic market, rather than the international market.