asked the Minister for Transport and Power whether, as a result of his recent directive to Aer Lingus to pay their way, all unprofitable air services will be discontinued irrespective of community, business or tourism needs.
Ceisteanna—Questions. Oral Answers. - Air Services.
6.
Mr. O'Donnell
No such directive was given by me to Aer Lingus. Aer Lingus operates on a commercial basis with full responsibility to pay its way without any access to subsidy for its operations. Consequently, the company in the exercise of this responsibility must keep under continuous examination the economics of each and every service operated and, in this process, the company gives due weight to community, business and tourism interests.
Mr. O'Donnell
While the Minister tells us no such directive was issued, was a public warning not issued to Aer Lingus?
It was not a directive in the terms suggested by the Deputy.
Mr. O'Donnell
A public warning was issued on March 7th to pay their way or else at Dublin Airport
The actual words used by the Minister were:
The size and scope of the airline's activity are now such that a serious commercial setback, if ever such should be encountered, would have financial implications of an order which would far exceed the capacity of the Exchequer to meet.
Mr. O'Donnell
Could I remind the Minister of the recent study undertaken by Dr. Martin O'Donoghue into the contribution of Aer Lingus to the economy, directly and indirectly, in which he showed that where social benefits are taken into account, the return on State investment could be as high as 26 per cent? Therefore I would ask the Minister, when in future Aer Lingus is deciding to put on a new service, to ensure that they would take into account such social factors as community, business and tourism needs and not be guided by purely commercial balance sheet returns.
I have already indicated that in making decisions of the kind the Deputy has in mind the company does give due weight to community, business and tourism interests.