asked the Minister for Transport and Power whether the profit position over the current year for Aer Lingus is a matter of concern to his Department; whether any reasons can be adduced; and whether his Department are aware of any plans to correct the profit deficiency.
Ceisteanna—Questions. Oral Answers. - Aer Lingus Profit Position.
16.
I understand from Aer Lingus-Irish that, in the first quarter of the current financial year, they had a shortfall of £160,000 in operating profit by comparison with their target. This shortfall is serious in itself but not critical when looked at against a target of over £2 million operating profit for the year. The airline expect that, for the year as a whole, they will come close to their budgeted traffic.
The troubles in the north are likely to have an effect comparable to last year i.e. a reduction in the airline's targeted operating profit of as much as £400,000.
The airline are constantly adjusting their level of operations to meet changes in the volume of traffic and are endeavouring to keep a tight control on expenditure. However, the situation does not call for any major change in plan.
Could the Minister tell me what is the meaning of the words "operating profit" used three times in the answer to the question? What is an operating profit?
I thought the Deputy was an economist.
I am an economist all right, the same as the Minister is a doctor.
He is an operating economist.
Question No. 17.
I think the Minister is prepared to answer my question.
We shall talk about it some other time. I do not like telling economists their own business.
I am entitled, after that remark, to ask the Minister another question. Are the words "operating profit" just a lot of rubbish?
I think it is an accepted term.
It is not an accepted term. It is used by Aer Lingus all right, but it is not an accepted term.
Does it mean profits without taking the expenses into account?
Quite.