Dick Spring
Ceist:11 Mr. Spring asked the Minister for Tourism and Transport if he will make a statement regarding the decision of Pan AM to cease operations at Shannon Airport.
Ceisteanna — Questions. Oral Answers. - Pan AM Service Withdrawal.
Joe Sherlock
Ceist:41 Mr. Sherlock asked the Minister for Tourism and Transport if he will outline the implications for Shannon Airport of the decision of Pan AM to cease flights to Shannon; the steps which are being taken to ensure that tourist numbers do not suffer as a result of the decision; and if he will make a statement on the matter.
Gerry Reynolds
Ceist:48 Mr. G. Reynolds asked the Minister for Tourism and Transport, in light of Pan AM's announcement to withdraw their service from Shannon, if he will start immediate negotiations with another major American airline so as to have it in position for the coming tourist season in order that the Government's projected tourist figures from North America are met.
I propose to take Questions Nos. 11, 41 and 48 together.
On 26 January 1990 Pan AM confirmed its decision to suspend its scheduled passenger service between New York and Shannon with effect from 17 February 1990 because of disappointing economic results on the route and the need to generate profits.
The suspension of the service is a matter of regret and disappointment to me and I have communicated this to the President and Chief Executive Officer of Pan AM. I have asked the company to reconsider its decision in the matter, particularly in the light of the Government's targets for the doubling of tourist numbers over a five year period and the considerable investment being made in promoting Ireland as a major tourist destination for US visitors.
As a result of the Pan AM decision, Aer Lingus is planning to provide additional capacity on the New York-Shannon route this summer. Aer Lingus already have plans to expand their services on transatlantic routes for summer 1990 by leasing-in additional aircraft and incorporating extra seats on their Boeing 747 aircraft. In addition to the New YorkShannon route, the company's plans involve an increase in frequency on the Chicago route to twice weekly and Boston will be served by a Boeing 747 aircraft on a daily basis. Delta Airlines are also planning an expansion of their Atlanta-Shannon-Dublin service. The tour operators who organise charter services from New York are also planning to mount additional services this summer arising from Pan AM's departure.
Bord Fáilte and SFADCo will be making presentations shortly to a number of US airlines in an effort to attract them to serve Shannon. Senior executives of Aer Rianta are meeting with Pan AM this week to discuss their decision to withdraw from Ireland.
All of these developments should assist in minimising any impact which the withdrawal of the Pan AM services may have on the tourism industry and on Shannon Airport. Outside of the peak summer months, there is more than adequate capacity on Aer Lingus services to meet demand.
Obviously the withdrawal of the Pan AM service is outside the Government's control but is the Minister not convinced that this will jeopardise the Government's target for bringing tourists into this country?
I do not believe it will because we are making arrangements for Aer Lingus and Delta to pick up the slack. On a point of information, Pan AM had about 9 per cent of the numbers travelling on the route and I am confident that the other two airlines on the general route can take up that slack.
Having regard to the Pan AM decision to withdraw their service from Shannon Airport would the Minister not consider granting permission to charter flights to overfly Shannon and land at Knock Airport, which I believe would be a step which could increase tourism?
I refer the Deputy to my earlier reply in which I pointed out that there has been no change in Government policy in regard to that matter.
I must call Deputy Gerry Reynolds.
The Minister is having a bob each way.
We are not having a bob at all, Deputy.
The decision taken by Pan AM to cease operations at Shannon Airport will have serious consequences for the Government's projected figure of 100,000 extra tourists from North America this year. Even if Aer Lingus and Delta Airlines take up the slack of 45,000 seats which is the number of passengers brought into Ireland by Pan AM last year, they do not have the office outlets available to them a large American airline such as Pan AM have. If the Government do not manage to get another large American airline to fly into Shannon this year there is no way the Government's projected figures of 100,000 extra tourists in 1990 will be met.
The Deputy's analysis of the situation is correct. Obviously he has some very good knowledge of it as that is the rough break-down of the Pan AM catchment. As I said, I have arranged for Bord Fáilte to meet with TWA and American Airlines this week, Aer Rianta are meeting Pan AM today and SFADCo are having discussions with United Airlines in the coming weeks. These discussions will be of an exploratory nature but I am confident that by moving forward in our efforts to get other airlines to fly into Ireland and arranging with Aer Lingus and Delta to take up the existing 9 per cent slack there will be no adverse effect on our tourist industry.
When American airlines such as North West and TWA pulled out of Shannon Airport Aer Lingus were successful in taking up the capacity each year. Can the Minister assure the House that Aer Lingus will have the capacity to take up the slack this year?
I dealt with that question in my reply. Aer Lingus have assured me that they can take up that slack by leasing an aircraft and by a fresh configuration of seats on some of the larger aircraft.
I appreciate that this problem is not one of our making. The loss of the Pan AM network of contracts both within the travel and tourist businesses means we will suffer if we cannot get a programme together very quickly with Bord Fáilte so that they can get out there into the marketplace and arrange for another airline to transport those tourists who would have been brought into Ireland by the Pan AM network. Does the Minister not agree that it is not just a question of Aer Lingus and Delta having the aircraft on the tarmac in Chicago and New York — the passengers will not necessarily be waiting to get into our airplanes — and that Bord Fáilte and other ancillary groups in the marketplace will have to bring the tourists to the airports in Chicago and New York. That is the missing link. The Minister has not given us a broad enough outline of what exactly Bord Fáilte and his Department intend to do to guarantee that those tourists will ultimately arrive in Ireland and holiday here.
I would be very happy at another time to give the Deputy a full breakdown on Bord Fáilte's marketing plans in Chicago, Boston and New York. I can assure the Deputy that Bord Fáilte's marketing plans are very intense and that they have short to long-term strategies to increase our business from those and other catchment areas. I can go into this in more detail at another time. The question did not relate specifically to Bord Fáilte's plans but from what I know about them I believe they are extremely professional. The Deputy rightly drew a link between access transport and getting the business and I believe Bord Fáilte are on top of this.
Deputy Gerry Reynolds for a final supplementary.
I concur with what Deputy Byrne said but I do not believe Bord Fáilte have the network available to them that a large American airline such as Pan AM have. Geographically speaking, it will be nearly impossible for Aer Lingus and Delta airlines to cover small towns in America. Pan AM who are basically the same as Aer Lingus in Ireland, have offices which promote Ireland in all the small towns in the United States. If, before they withdrew their services, someone came into one of those offices to buy a ticket to Europe he would have been informed that they flew into Shannon. If we cannot get United Airlines, TWA or American Airlines to take up Pan AM's place this year it will be very difficult to achieve the Government's projected figure of 100,000 extra tourists.
This is tending to become a debate.
Only time will tell what will happen and I will watch the situation very carefully. The Deputy has rightly said that the solution is to try to get more airlines to fly into Ireland. It is very much at the top of my agenda on the transport side of my brief to get more airlines to fly into Ireland. I am following a definite strategy to try to do this by starting these talks. I have invited the United States Secretary of Transportation, Mr. Skinner, to visit us in order to consider an agreement on the Los Angeles route and I propose to discuss this matter with him also.