I am grateful for the opportunity to raise this matter which is of grave concern to workers at Shannon Airport and others who have an interest in it. I put on record my appreciation of the Minister's interest in this matter when I raised it with him some months ago and the trouble he went to with regard to it. I hope his response tonight will allay some of the fears of those working in Shannon Airport and in the region generally.
It is important to clarify that I am not seeking general pick-up rights to New York for Aeroflot but merely that they be entitled to carry transit passengers from the former USSR states which, in effect, is a continuation of the situation which pertained up to two years ago when Aeroflot was the only airline operating out of the then Soviet Union. Aer Lingus currently carries to New York a small number of passengers who originate in Minsk and travel on Air Belavia as far as Shannon. I understand this business is worth about £1 million to Aer Lingus but the loss in terms of ground handling revenue should the service be discontinued to Aeroflot would be at least four times that.
Air Ukraine currently flies eight times weekly to New York from Kiev via Shannon but their circumstances are rather difficult and there may be changes in that in the short term. Their service could be guaranteed if they were in a position to fly to Shannon and have their passengers carried further by Aeroflot. They would, of course, have major difficulty regarding their currency if they were forced to transfer their passengers to Aer Lingus at that stage. There is also a regular service from St. Petersburg which could terminate at Shannon, with considerable advantage, were passengers in a position to transfer on to the Moscow-New York flight.
The cost of travelling with Aer Lingus, though subsidised for those travelling from Minsk, is a major deterrent to the numbers travelling. If transit rights to Aeroflot were available the number of passengers availing of the service would be multiplied tenfold or more and the Kiev business would be guaranteed.
The most worrying aspect is that a partial or total pull out by Aeroflot from Shannon would be a complete loss to Ireland. It could be argued in the case of the changes under the Cahill plan that Shannon's losses were largely held in Dublin though there is no evidence of the promised gains from Manchester and London. However, in the case of Aeroflot, airport authorities in Prestwick, Stansted and elsewhere are waiting for them with open arms, cheque books and pick-up rights. It would be a monumental tragedy if the excellent groundwork by Aer Rianta in attracting the Russians to Ireland and the great development which took place under Aer Rianta International were undermined. The presence of Aeroflot and other eastern airlines at Shannon has been a major plank of Aer Rianta's hub strategy. It is widely believed that many of the recommendations in the task force report which we hope to see published in the next week or two hinge on the presence of Aeroflot at Shannon. There is great potential for developing this already fruitful relationship and it should not be thrown away. Our geographic position as a natural air cross-roads between the Americas and the emerging states of Eastern Europe means we have an outstanding opportunity to share in the massive expansion of tourism and trade which will inevitably follow US and European investment in Eastern Europe.
The arrival of Aeroflot at Shannon made the airport profitable and guaranteed year round services and jobs not just at the airport but in the surrounding area. It guaranteed continued work for Aer Lingus ground handling staff. If is widely believed that the decision to deny Aeroflot transit rights from the former Soviet states has been taken in an effort to protect the Aer Lingus service on the transatlantic route. I share the genuine wish of every Shannon worker that Aer Lingus should prosper and that the new air bus fleet will guarantee its future on the north Atlantic and the continuation of the new daily year round service.
Unfortunately Aer Lingus continues to undermine its credibility at Shannon. On the second day of the new air bus service the flight from Shannon was held up because the crew was an hour late arriving from Dublin. Airport workers had been told this crew was based at Shannon. Twice in the past week the flight from New York to Shannon did not operate because the Shannon plane was switched to the Dublin route on the return flight. It is difficult to persuade people involved in tourism and business interests in the Shannon region to take Aer Lingus executives seriously when the airline has failed twice to get its flights into Shannon since the inception of the service.
I urge the Minister to reconsider the position in the context of the task force report.
