Vol. 255 No. 12
asked the Minister for Transport and Power if his attention has been drawn to a statement (details supplied) by the General Manager of Aer Lingus that the Government has been overcharging the company for landing fees to a degree unequalled in Europe and the USA, and that no national purpose is being served by the Government thereby pushing the company into a financial loss; and if he will state the Government's policy on this matter.
27.
asked the Minister for Transport and Power if the Government is aware that many governments cover the war insurance risks of their national air carriers thus saving them substantial costs; and if the Government will favourably consider the adoption of such a policy in respect of Aer Lingus.
28.
asked the Minister for Transport and Power if he is aware of the projected £2 million loss anticipated by Aer Lingus at the close of the current financial year; and if he will make a statement on the matter.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 26, 27 and 28 together.
Aer Lingus, in common with other international airlines, are experiencing great difficulty in maintaining profitability of operations due to a number of adverse factors such as steeply rising costs, failure of traffic to grow as forecast, competition from charter carriers and the coincidence of these developments with a large and costly increase in international capacity. In addition, Aer Lingus is affected by the situation in Northern Ireland. It is not practicable to forecast at this stage the financial out-turn for the current financial year which ends on 31st March, 1972 but I am satisfied that the board and management of Aer Lingus are taking every action open to them to meet the situation.
Aviation costs have been very gravely affected by the hi-jacking of aircraft through rising premiums and difficulty in obtaining cover. This problem can only be met adequately through international action and Ireland is co-operating very fully with other countries towards this end. Some States provide assistance in meeting war risk premiums; some do not. Transfer to public funds of the financial responsibilities involved is not a solution to the problem in our circumstances.
Landing charges at Irish airports are not out of line with those at comparable airports. A comparison of the airport charges, including landing fees, passenger load fees and lighting charges, payable by the airlines at 15 major Western European airports shows that Dublin and Shannon fall between fifth and tenth place for varying aircraft types.
Landing charges fall heaviest on short-haul services. Aer Lingus operate a comparatively high proportion of short-haul services including domestic services and I am considering whether some relief in airport charges should be given for such services.
Would the Minister consider giving some subvention to Aer Lingus to meet the cost of the war insurance risk faced by the company? Already they are heavily increased due to the insurances in regard to hi-jacking. Would the Minister not agree that in view of the current substantial operating surplus of Aer Rianta—as stated at its annual general meeting today—they could afford to transfer a substantial subvention to Aer Lingus, thus preventing an extremely difficult situation arising?
I think the Deputy has fallen a victim to a newspaper and popular misconception that Aer Rianta——
I am referring categorically to the statement of the general manager of Aer Lingus—not a newspaper comment.
There is a misconception that Aer Rianta, as at present constituted, are responsible for all aviation and airport charges. This is not so. In fact, within my Department at the present time we are carrying expenses of the order of £2,800,000 in relation to air traffic control, meteorological services, radio services, airport management and administration expenses. The purpose of legislation, which I shall be bringing before the House in the next session, is to put all of these services under a single national airport authority. This legislation can be considered by the House and the whole matter reviewed in perspective. It is a complete misconception to isolate the Aer Rianta accounts without taking other air traffic expenses into account. If the matter is looked at in globo, in fact the community is at a loss in maintaining airports, air traffic control and the associated services.
While we welcome the proposal to have a unified national airport authority, surely the Minister will accept that Aer Lingus has an exceptionally high degree of short-haul operations and, as such, is obliged to bear substantially higher landing fee charges than other national airlines? According to the general manager, that company is now facing exceptionally heavy costs. Surely the Minister will consider and must consider giving some relief in that area. Otherwise the company will be in a very critical financial position.
I am all for solving problems but there is no point in solving a problem by merely transferring something from one pocket to another.
