asked the Minister for Transport and Power whether he has held any discussions with Aer Lingus on its financial position; and whether a State subvention to the company is under consideration.
Ceisteanna—Questions. Oral Answers. - Aer Lingus Financial Position.
18.
I have had periodic meetings with the chairman and boards of directors of Aer Lingus and Aerlínte on financial and policy matters.
State subvention to the airlines is not under consideration.
Arising out of the reply of the Taoiseach—I am sorry. Perhaps, I am anticipating things. Has the Minister any evidence which suggests that the profit and loss position over the past few months has been a bad one and that the company, far from making gains, has, in fact, run into severe financial trouble? While it may be correct to say that no subvention has been agreed upon at present, it is obviously becoming very much of a reality with the passing months.
The Deputy is quite right to query this matter. Every airline in the world is in very serious trouble at present from Pan America and TWA right down to the smaller airlines such as our own. Every airline is in serious trouble and this is a matter which is engaging my attention at the moment.
Did the Minister not tell me yesterday in this House that the air companies were highly profitable?
I want to tell the Deputy and the House that in regard to airlines from the giants down, our national airline is outstanding in the matter of efficiency and profit earning capacity.
The Minister told me yesterday that they were highly profitable.
It ill behoves any Deputy of this House to talk about our airlines which have shown the way to the rest of the world in relation to how to manage aviation——
I tell the truth anyway.
(Interruptions.)
Question No. 19.
Did the Minister take into account the announcement by Mr. Michael Dargan reported in today's news at 1 o'clock that the cash flow projections for this year were £800,000 down and that the airline was in severe financial trouble? Did he take that into account in replying to the question?
I have it here.
Will he ask if there will be a request from the airline for a State subvention? He has stated that there is no question of a State subvention at the moment. Does he think from the report which was the subject of an announcement on the 1 o'clock news that there will be a request for a State subvention and, if so, when will it be considered by the Cabinet?
I far prefer the tenor of Deputy O'Leary's remarks. He was seeking to be constructive.
Was that my reference to the Taoiseach?
This is a very serious business——
Indeed it is.
——involving aviation all over the world, not just here. Last year the Irish airline was one of the very few profit-making national airlines in the world.
That was last year.
This year there are still more serious difficulties affecting the whole field of aviation. I am in consultation with Aer Lingus and Aerlínte about the present and the future prospects for their operations. That is the way I want to leave it at present.
Employ McKinsey and Company.
We do not intend to employ anybody like that because our airline has the most outstanding management and operational team in the whole sphere of our public enterprise situation. The discussions are continuing.
Question No. 19.
Mr. O'Donnell
Has the Minister any information from the long-drawn out IATA conference at Montreal in relation to the air fares structure which will have a very important bearing on the future viability of the airlines? Could the Minister say has any significant decision been reached.
This does not arise on Question No. 18.
This is why I cannot talk fully about this. Part of what will emerge in the way of concrete decisions by the Government and by the airlines will arise as a result of the decisions reached at the conference to which the Deputy referred.