asked the Minister for Transport and Power whether there has been a reduction in Aer Lingus United Kingdom traffic during March, April and May this year compared with the corresponding period last year; and, if so, why.
Ceisteanna—Questions. Oral Answers. - Aer Lingus Traffic.
19.
Mr. O'Donnell
Aer Lingus passenger carryings on the cross-Channel routes showed a decrease of 8 ½ cent in March, April and May of this year as compared with the same period of last year. The decrease was due primarily to the loss of tourist traffic as a result of the continuing disturbances in the North.
Mr. O'Donnell
Raising again the question of the decline in traffic from Britain, would the Minister not be honest and admit that the troubles in the North are not the only factor and that the major factor is the high air fares? I make no apologies for referring to this again. Is the Minister aware that five constituents of mine who were coming home to Shannon from London ten days ago, five members of one family, had to pay a total of £175 to Aer Lingus for a two-day trip to Ireland? Is this not the real problem? It is about time this problem was tackled.
The Minister has already given a full reply to the Deputy on this subject. The Deputy may know that on 1st April Aer Lingus introduced a number of new tourist and promotional fares including a special youth fare, the fly-drive facility which combines an air fare with car hire, and gateway holidays which include air transport, connecting air transport to and from the hotel and accommodation at a hotel, for a price equal to the lowest air fare in the off-peak season and slightly in excess of it in the peak season.
Was it a drop in revenue or a drop in the number of passengers?
Passenger carrying.
Mr. O'Donnell
Is it not a fact that on 1st April this year air fares between Britain and Ireland went up by 10 per cent and there has been a corresponding decline in traffic since that time?
Not at all. It is not possible to prove there is a connection between one element and the other.
Question No. 20.
Would the Minister indicate what percentage of total traffic is made up by the ordinary person wanting to travel between Britain and Ireland?
I have not got that.
But this is the essential ingredient of this issue, as to whether or not travel between Ireland and Britain is organised on a vast once-a-year tourist scale or between ordinary people wanting to move between Ireland and Britain, the ordinary Irish person in Ireland wanting to move to Britain or the ordinary Irish person in Britain wanting to move back to Ireland. I would put it to the Minister that what Aer Lingus is not paying sufficient regard to is the ordinary traveller who wants to travel at modest rates and is inhibited from doing so because the rate for travel is twice that which operates between Britain and the Continent.
May I ask an intelligent question and make an intelligent suggestion? Would it not be wise and just for Aer Lingus to apply themselves to the "great Aer Lingus robbery" and bring the people over and put people in movement, as CIE rightly did?
That would be absolutely impossible. The reason for Aer Lingus participation in IATA arrangements is that all such air fare structures are related to bilateral agreements and these, in turn, are related to multilateral agreements. The ability of an airline to derive for itself special fares in relation to the whole of the pattern of fare structures depends on bilateral negotiation. We would be in a position of absolute chaos if Aer Lingus did not, in the main, agree with the other members of IATA, even though there are breaches of the arrangements in some cases. It would be quite impossible. If Aer Lingus were to start a fare structure of that kind there would immediately be difficulties with the British Government and the British civilian air authority over BEA and if both the companies reduced their fares markedly to the point that they were copying the CIE "train robbery" then they would be in trouble because of the multilateral arrangements by carriers all over Europe.
Question No. 20.
It is cheaper from London to Belfast than from London to Dublin. That is robbery.
(Interruptions.)
Order.
Could the Minister explain, if we are tied by international agreements, why it is much cheaper to travel from London to Belfast than from London to Dublin and it is a much longer distance? We are not and the Minister for Transport and Power had to admit this.
The Minister said there was no connection between the decline in traffic and the huge increase in air fares on 1st April this year. Does he really stand over that?
I said there is no proved connection. We know that most of it is due to the Northern problem.
Question No. 20.
Is it not an elementary thing that if you increase the price of something you sell less?
The Deputy is talking nonsense.
(Interruptions.)
He should be well aware that the earnings of both English and Irish people have gone up and that has to be related to increases in fares and inflationary increases in wages and incomes of all kinds. But at least the earnings have gone up so that when the air fares go up 8 per cent or 10 per cent that is partly covered by the fact that there have been increases in earnings, and the Deputy knows that well.
(Interruptions.)
I am calling Question No. 20. Will the Minister please reply to Question No. 20?
He is talking nonsense.