Vol. 404 No. 1
362 Mr. Byrne asked the Minister for Tourism and Transport if he will outline his views on the accuracy of the figures in the consultants report (details supplied) entitled the Shannon Stop-over Policy that 80,000 passengers are being lost to Heathrow and Gatwick airports each year because of the effects the Shannon compulsory stop-over is having on the development of transatlantic flights.
In a report entitled The Shannon Stopover Policy dated March, 1990, Davy Kelleher McCarthy Ltd, Economic Consultants, estimated that in 1987, around 80,000 passengers travelled between Ireland and the US via Heathrow and Gatwick Airports. This figure was based on the findings of a survey undertaken by the UK Civil Aviation Authority which estimated that in the same year 67,962 passengers travelled between Ireland and the US via Heathrow and 12,074 via Gatwick.
Such surveys are a useful source of information on trends and developments within British civil aviation but it is not to be concluded from the survey in question, as implied in the Deputy's question, that 80,000 passengers are being lost to Heathrow and Gatwick because of the mandatory Shannon stop policy.
363 Mr. Byrne asked the Minister for Tourism and Transport the extent to which the extra costs involved for Aer Lingus in having to stop over in Shannon has mitigated it opening up its newly planned Dublin/Los Angeles route; and when he now envisages the route will be opened.
The US travel market is severely affected by the weakness of the US dollar, the deepening recession in the United States and the continued uncertainty caused by the Gulf crisis.
Aer Lingus have informed me that these unfavourable market conditions, together with a delay in the delivery of the first B767 aircraft, increased fuel costs and a number of other cost factors, including the Shannon stop, have all combined to make launching the Los Angeles/Dublin service uneconomic at this time.
I understand that Aer Lingus plan to inaugurate the Los Angeles service as soon as market conditions and the cost environment improve.
364 Mr. Byrne asked the Minister for Tourism and Transport if, in view of the present difficulties being faced by Aer Lingus in attempting to secure a £20 million pound savings in their operations and as they have deferred the opening of the planned Dublin/Los Angeles route, he will agree to commission an independent analysis that will address the issues raised by reports (details supplied) on the transatlantic status of Shannon airport.
In addition to the reports on the Shannon stop policy referred to by the Deputy, I have received a number of submissions which my Department are at present studying, from various organisations and interests.
I have no plans at present to commission an independent analysis to address the issues raised in these submissions and reports, but I will, of course, keep that option open.
