asked the Minister for Transport and Power whether, in view of the high transport charges across the Irish Sea, he will take steps to prevent any further increase in air fares between Britain and Ireland.
Ceisteanna—Questions. Oral Answers. - Air Fares—Irish Sea Transport Charges.
38.
Mr. O'Donnell
As I indicated in a reply to a similar question by the Deputy on 27th October last, I must be prepared to authorise reasonable fares increases if, for reasons beyond the company's control, costs continue to rise faster than revenue. That is the position at present. Indeed, due to an unprecedented combination of adverse circumstances the national airline is now faced with a loss situation for the first time over a long period of years. The International Air Transport Association have agreed on fare increases of 10 per cent on the routes between Ireland and London and 7½ per cent on other cross-channel routes for the year commencing 1st April, 1972. I am at present considering these proposed increases.
Mr. O'Donnell
For the record, would the Minister not agree that any increases in cross-channel transport charges now or in the foreseeable future would have absolutely disastrous repercussions particularly for the tourist industry here and for the revenue of Aer Lingus as well?
I agree. It is a serious matter but air fares on scheduled airline routes are a matter for international decision.
Mr. O'Donnell
Would the Minister not agree that the time might now be appropriate for Aer Lingus, in particular, to look at the idea which has proved to be most successful in the case of CIE? In other words, instead of increasing charges they should try, as an experiment, to reduce charges. I am convinced this would generate an additional volume of traffic.
As the Deputy is aware, there is a big difference between the two. Fare and rate decisions made by CIE can be made internally and are not part of any international arrangement or agreement. It is otherwise in the case of Aer Lingus and every other scheduled air carrier in the world.