Vol. 399 No. 10
37 Mr. McCartan asked the Minister for Tourism and Transport if he will outline the progress made to date in implementing the proposals contained in the Appendix to the Programme for National Recovery in respect of Aer Lingus and Aer Rianta; and if he will make a statement on the matter.
The information requested by the Deputy is contained in a tabular statement which I propose to circulate in the Official Report. I fully support the efforts of Aer Lingus and Aer Rianta to develop their potential for contributing to economic growth and the creation of sustainable employment in the context of the Programme for National Recovery.
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Item listed in the Appendix to the Programme for National Recovery |
Progress to Date |
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Aer Lingus |
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1. The development of a £12 million engine overhaul project by Airmotive Ireland to generate 100 new jobs by 1990, increasing to 150 by 1996. |
The Airmotive CFM-56 engine overhaul project is operational and the company is also developing its facilities for in-house repair of components. |
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2. The further development by Airmotive of its in-house overhaul and repair activities, creating ten new jobs. |
Employment in Airmotive Ireland on these activities and other engine overhaul work has expanded from 590 in April 1989 to 620 in April 1990 and is expected to increase by a further 41 by April 1991. |
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3. The expansion of its component overhaul and repair business at Dublin Airport, preserving 25 jobs initially and eventually leading to expansion as business develops. |
Aer Lingus still have under active consideration the expansion of the component overhaul and repair business at Dublin Airport. An investment of £13 million/£14 million is involved which could lead to the creation of over 200 jobs. |
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4. The expansion of its spares trading business, creating 15 additional jobs. |
The expansion of the spares trading business is ongoing and employment is growing. |
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5. The establishment of an expanded flight simulator facility, preserving 15 jobs and creating four more. |
A new flight simulator for the new-generation Boeing 737 aircraft has been in operation since September 1989. The business of catering for the company's own pilot training and for contract pilot training is progressing very satisfactorily and the project has reached its employment target. |
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6. The establishment of a joint venture with GPA, another airline and possibly an insurance company to engage in aviation reinsurance, 13 jobs. |
Because of unfavourable market conditions at present, Aer Lingus have decided not to pursue the establishment of a joint venture aviation recreating insurance company for the time being. |
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7. The development by Airmotive of an engine case repair facility costing £10 million and generating up to 100 jobs. |
This joint venture arrangement with Pratt & Whitney is on schedule. The facility is under construction and trading is expected to commence later this year. Employment is expected to rise from over 70 initially to around 300 after six years of operation. |
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8. Further expansion of hotel investments in Ireland to generate up to 30 new jobs. |
The question of further expansion of hotel investment in Ireland by Aer Lingus is still under consideration. |
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Aer Rianta |
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1. The establishment of a joint venture with Aeroflot for painting of Aeroflot fleet at Shannon Airport. |
This facility was established in 1988 and has led to the creation of 50 new jobs. It had a turnover of £5 million in 1989. |
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2. The development of airport lands including industry and hotels. |
The most recent significant development is the project of GPA Ltd. to provide an £80 million aircraft overhaul and maintenance facility at Shannon Airport which is expected to create approximately 1,000 jobs in the area. |
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3. The undertaking of consultancy in duty free shopping overseas. |
Aer Rianta have entered into a number of joint venture agreements in the Soviet Union in relation to the operation of duty free shops, other retailing activities, in-flight catering and airport advertising. These projects have given rise to the creation of 120 jobs for Irish workers and generated turnover of over £20 million in 1989. Other similar projects have been agreed and are at an advanced stage while others are under examination. |
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Aer Rianta also secured a contract for the management of a duty free shop in Bahrain earlier this year. |
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4. The development of Bunratty Castle type entertainment in the Dublin area. |
These are long-term projects which are still under consideration by Aer Rianta. |
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5. The development of major conference centres at Dublin and Shannon Airports and possibly Cork. |
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6. The restoration of air freight business with particular emphasis on small parcels and Federal Express type operations. |
Significant improvements in freight facilities at the three State Airports have been put in place since 1987. These include the construction of additional cargo terminals at Dublin and Shannon Airport and a dedicated fast freight terminal at Dublin Airport. A round-the-clock customs clearance service has been provided at Dublin Airport. A second cargo handling agent has been appointed at both Dublin and Shannon Airports. |
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7. The exploration of the possibility of extending current mail-order business to more international markets. |
This initiative is being pursued vigorously by Aer Rianta. The mail order business has been extended to Japan, where Aer Rianta now have a customer base of 2,000, and a turnover of $0.5 million was recorded in 1989. |
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8. The capitalisation on Shannon's international reputation in food and catering circles. |
In-flight catering sales to airlines reached a record level of £8.7 million in 1989. Aer Rianta's international reputation in this area has been instrumental in the company's success in securing joint venture contracts in the Soviet Union. |
