Vol. 496 No. 3
31 Mr. Yates asked the Minister for Public Enterprise if she will intervene in the dispute between Aer Rianta and air carriers in relation to the abolition of the landing and departure charges discount and rebate schemes which are being abolished in early 1999; and the discussions, if any, she has had with either party on the matter to date. [22381/98]
I am aware that Aer Rianta has decided not to introduce a new cycle of discount schemes related to airport charges at Dublin Airport and that the company informed the airlines of this by letter in late September. In my view this is a prudent interim position, pending further decisions on airport charges by me. However, the benefits of the 1997 and 1998 discount schemes will continue to apply until 2003 and 2004, respectively.
Last March, the European Commission sought information on these discount schemes on the grounds that they could constitute a distortion of competition. Members will recall the political event which led to that. The Commission was supplied with full information and I understand it is continuing its examination of the schemes.
Under the provisions of the recently enacted Air Navigation and Transport (Amendment) Act, I have responsibility for the regulation of airport charges levied on all airlines at the three State airports. In this context, I expect to receive comprehensive proposals in respect of airport charges from the board in due course. The chairman has informed me that the board has commissioned consultants, to report within two months, to assist it in formulating these proposals. In considering these proposals, I will take all relevant factors into account.
I had discussions on this issue with the chairman of Aer Rianta, in the context of regular meetings, and the chief executive of Ryanair, whom I met on two occasions — once formally and once informally. I will continue to consult with Aer Rianta and the air carriers on this issue in the months ahead.
I thank the Minister for her reply. She stated that she is awaiting a report from Aer Rianta and the consultants it commissioned which could take two months to arrive. Is she aware that Aer Lingus and Ryanair are currently planning their route development for 1999, that they will make decisions on it in December and that they may redirect some flights, planes and routes to operate out of the UK? Is she also aware that there could be a potential loss of customers if air fares rise by £10 per ticket or a potential increase of 1.5 million passengers if low fares are maintained? Does the Minister not agree that, in the interests of the national tourism industry, the economy and Aer Rianta, she should intervene to try to achieve, if not a mediated settlement, an interim continuation of the discount scheme?
I may not have authority to do so. I have such authority under an Act in this jurisdiction, but it is clear that big brother is watching us because on each occasion there is a furore about airport charges there is an intensification of queries from Europe regarding whether airlines are gaining or whether subsidies could be granted to certain airlines to underpin their operations.
Ryanair is making massive gains.
In the context of VAT, Aer Rianta's decision to commission a study is extremely important. We are giving consideration to the ground handling directive which also affects this issue. I received a request that an obligation be placed on carriers at Dublin Airport to put in place a wheelchair facility for those who require it. One airline charges £12 for this service and it will not allow people to use wheelchairs, regardless of their level of disability, unless they pay. That is not good enough. We are seeking to include a provision in the ground-air handling directive to resolve this problem.
Having said that, I have the power under Irish law to fix the charges to which Deputy Yates referred. However, I do not have the power to grant subsidies to certain airlines and not to others. To use an old cliché, the best result we can achieve will be to ensure there is a level playing field in the operation of these charges.
Is the Minister aware of the contention that this could add £10 to the price of air fares if it is put in place? Does she accept that, in effect, Aer Rianta holds a monopoly over operations at Dublin Airport and, in that context, she has a special role as regulator? Is she aware Aer Rianta maintains that, of the 27 airports it uses, Dublin is the most expensive? Any EU problem should be seen in that context. Will the Minister intervene to encourage Aer Lingus — in which she has a clear interest — British Midland, Ryanair and other carriers using this competitive route to enter negotiations on this matter? The Minister could act as mediator in the first instance and then decide whether she needs to intervene directly by way of regulation.
I met representatives of Ryanair and Aer Rianta on separate occasions and I understand the chairman of Aer Rianta met the chief executive of Ryanair. There will be no movement on this matter before January.
There is a clear impasse.
No, there is not.
The Deputy should allow the Minister to conclude because there are less than 30 seconds remaining to her.
I want parity between carriers, I do not want any company, public or private, to be seen to be receiving a subsidy which would give it a more favourable position than its competitors.
It would allow——
No company can be allowed to hold such an advantage.
