asked the Minister for Transport and Power whether he proposes to make special representations to IATA with a view to enabling Aer Lingus to generate additional traffic on their UK services by introducing a new low fares structure similar to the CIE "Great Train Robbery"; and, if not, why.
Ceisteanna—Questions. Oral Answers. - Aer Lingus Traffic Generation.
11.
Mr. O'Donnell
International air fares are settled by the airlines concerned within the negotiating framework provided by the International Air Transport Association. The level of these fares is primarily a matter for the commercial judgment of the airlines and Governments do not intervene unless the fare structures adopted are either uneconomic or unfair. Aer Lingus are fully aware, and have been so reminded by me, that in the national interest generally and in the tourism interest in particular, air fares must be kept at the lowest level compatible with economic operation. I am assured by Aer Lingus that the fare levels are necessary to ensure economic operation and avoid increasing losses during the present difficult period. Nevertheless, despite these constraints, the Irish/ British air fares are, on a cost per mile basis, about the lowest international fares in Europe.
The reduced CIE fares were aimed at increasing net revenue by filling the very substantial unused low season capacity of the railway. They are, just like the Aer Lingus fares, based on strictly economic considerations.
For these reasons, I do not propose to interfere with the company's commercial judgment in this matter. In any case the Deputy will appreciate that any interference with the fare structure on Irish/British routes would, in practice, have to be agreed with the British airlines and the British authorities who would be equally concerned.
Mr. O'Donnell
Despite what the Minister has said, is it not a fact that the present air fare structure between the United Kingdom and Ireland is not attractive to Irish people returning here on holidays? They do not require accommodation and are not interested in package deals. Is the Minister aware that the Spanish Government secured permission from IATA two years ago whereby the Spanish National Airlines, Iberian Airlines, can bring Spanish emigrants back to the homeland on holidays at a 40 per cent reduction? Why cannot we do the same? This is what I have been asking in the House for the past four or five years. I think it is possible to do so and that it is very important that Aer Lingus should consider doing so now.
We have very attractive packages in which Aer Lingus are involved for Irish holidays. The question of the actual airfare structure is a different matter involving commercial principles with which Aer Lingus is very concerned.
Do these include hotel bookings?
Yes.
Surely the Minister realises that an emigrant coming home on holidays does not come to a hotel in the normal course?
I appreciate that.
Then there is no point in it. It is not an attraction for emigrants returning on holidays.
At the same time, the Deputy will be interested in maintaining a viable commercial Aer Lingus operation having regard to the employment involved.
But it is for the purpose of boosting some of the hotels.
It is for the purpose of ensuring 6,000 jobs. I would ask the Deputy to contact his counterpart in any of the aviation unions concerned on this matter.
How often are there consultations between Aer Lingus and IATA?
Regularly, week in, week out.
Are these consultations ever published?
They are going on week in, week out. It is a routine matter.
Mr. O'Donnell
The Minister informed me in the House a fortnight ago that the cheapest scheduled return air fare between Shannon and London was £29.50 for 1972. Would the Minister not agree that the vast majority of Irish workers in Britain could not possibly afford to pay this fare? Is not this the whole problem?
The approach to the Irish market in Britain is on the basis of package holidays at home which, when the package is worked out between hotel or guesthouse or farmhouse or whatever rail fare or carhire operations are involved here, would be at a cheap rate. This is how we are doing it.
But the ordinary Irish person coming home is not interested in these things.
I am calling Question No. 12.
(Interruptions.)
The Minister has said that the economic viability of Aer Lingus must be maintained——
We have gone away from that question, Deputy.
Why not subtract the price of the hotel from the package deal and let the emigrants come home at a cheaper fare?
I shall be making an announcement this evening about all of this matter.
(Interruptions.)
We shall have a lot of announcements this evening.