Vol. 396 No. 7
11 Proinsias De Rossa asked the Minister for Tourism and Transport if he has received a proposal from Aer Lingus for the establishment of a joint airline with Aeroflot; if he intends to approve the proposal; the present stage of such plans; and if he will make a statement on the matter.
I have been encouraging Aer Lingus to develop fully their international linkages in the joint venture area. The company are having talks with Aeroflot with a view to increasing the business arrangements currently existing between the two airlines, including the possibility of establishing a joint venture airline. I should point out, however, that the proposal involves a number of complex issues and that examination of its feasibility is at a very early stage.
Can the Minister detail for us what are the complex issues and if the proposed arrangement is by way of Aer Lingus gearing themselves to cope with the open market post 1992?
Yes. The issues involved have to do with routes. For example, Aeroflot, have a very strong dominance in going eastward from the Soviet Union to South East Asia, Japan and that side of the world. Aer Lingus have increasingly strong links, and are trying to develop them day by day, with the western side, the United States and that side of the world. There is great potential to try to develop both of those route networks. One could do that by using the Moscow type route. The over Moscow route to the Far East is a very attractive one. There are certain synergies there that would make it attractive for both airlines to talk about having some kind of joint venture. The issues the Deputy talks about have to do with routes, how they might be financed, what type of competition is envisaged, what kind of trends are in the aviation world, whether they are going for larger airlines or more niche type airlines and so on. All those issues have to be thrashed out. I should also say that Aer Lingus, at my request, are continually talking to other international airline companies. They must keep up with the game in regard to international linkages.
I thank the Minister for his reply. I welcome the outgoing approach by Aer Lingus in relation to establishing linkages with other airlines whether it be Aeroflot or any other European airline. At what point does the Minister expect a decision will be made given the complexity of the issues and the short time scale involved between now and the end of 1992 and the importance for Aer Lingus, despite their size, in relation to the Irish market and their tiny size in relation to the European market? How can Aer Lingus be assisted in developing these linkages, whether it is with Aeroflot or any other airline to ensure their viability?
At Government level I try to be of assistance by having discussions with other transport and aviation Ministers and the officials of my Department have discussions with other Departments. Generally we support the efforts of Aer Lingus in seeking to make fresh linkages. I do not think the 1992 deadline should be sacrosanct because that would only set a deadline for Aer Lingus that may not make commercial sense for them. It is better for them to proceed as they are handling it now, that is to talk to a number of airlines, look at projects as they are proposed, look at joint ventures on the basis of common sense and then to proceed with them when they are happy that they make sense for Aer Lingus. That is a better approach rather than setting a deadline which could only push them into something they might not wish to go ahead with.
Arising from the Minister's reply, would he confirm that the arrangements he referred to include the possibility and even the likelihood of direct flights from Shannon to Tokyo or else a stop over flight, say, Shannon-Moscow-Tokyo and if he will soon be in a position to make an announcement in regard to this particular route?
The Deputy is asking me if I envisage direct flights from Shannon to Tokyo?
Or via Moscow.
I have no proposals for any airline at the moment to fly direct from Shannon to Tokyo.
Question No. 12 please.
Does the Minister expect to be in a position to consider such a proposal in the near future?
I have told the Deputy many times in this House that I spend my days trying to get airlines to operate from Ireland. I urgently welcome airlines to use our airports and our routes. That for an island nation must be a major priority of any Government here. If there is an airline that wish to fly from Shannon to Tokyo let them take the invitation from this debate today.
Will the Minister make the announcement before the summer?
