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Dáil Éireann díospóireacht -
Wednesday, 22 Nov 1995

Vol. 458 No. 6

Written Answers. - Aer Lingus Strategy.

Ivor Callely

Ceist:

9 Mr. Callely asked the Minister for Transport, Energy and Communications the discussions, if any, that have taken place regarding the development of strategic alliances between our national airline, Aer Lingus, and foreign airlines; and if he will make a statement on the matter. [17204/95]

First, I want to put on record the fact that the Government has and will continue to encourage Aer Lingus to develop appropriate strategic alliances with other airlines as part of its overall development strategy, where they are judged to be in the best interests of the airline and the economic development of the country.

My predecessor responded to a similar parliamentary question on 30 March 1994. In his reply, he indicated that the question of a strategic alliance for Aer Lingus was one of the issues addressed in the document on Irish aviation policy published in February 1994.

With the progressive liberalisation of the airline industry worldwide, many airlines with relatively small domestic markets have sought alliances with stronger carriers or groups of carriers.

In some cases, these have involved cross shareholdings while, in other cases, alliances are confined to marketing arrangements.

Following the implementation of its restructuring programme. Aer Lingus is in a better position to strengthen both its market and financial positions through alliances with other carriers feeding into the Aer Lingus system.

The proposed form of such alliances is a matter, in the first instance, for the board and management of the airline. The Government, as shareholder, will seriously consider, on their merits, all proposals from Aer Lingus for such alliances.

The Deputy will appreciate that information on Aer Lingus' discussions with specific air carriers is commercially sensitive by its nature and it would be inappropriate for me to comment on such matters.

I can say, however, that Aer Lingus already has in place a number of route and marketing agreements with other airlines.

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