Dáil Éireann Debate, Wednesday - 10 February 2010
112 Deputy Jack Wall asked the Minister for Transport if he has been briefed by the Government-appointed directors to Aer Lingus on the recent agreement between staff and management on a cost cutting plan for the company; when this plan will be fully implemented; if he has further been briefed on Aer Lingus’ new strategy; and if he will make a statement on the matter. [6425/10]
Amharc ar fhreagra116 Deputy Ciarán Lynch asked the Minister for Transport the position regarding national aviation connectivity particularly in the context of the proposed new routes for Cork and Shannon airports and the recently signed deal between Aer Lingus and another airline (details supplied); if he will publish a new White Paper on the future of Irish aviation in view of the fact that many stakeholders in the aviation business believe there is currently an air transport crisis; if he will review the imposition of the €10 air travel tax; and if he will make a statement on the matter. [6426/10]
Amharc ar fhreagraI propose to take Questions Nos. 112 and 116 together.
On 28 January 2010 I met with the Aer Lingus management team, in my role as shareholder, and was briefed on the company's new business model, as announced to the market on 26 January in London. The CEO, Mr. Mueller, explained that the company has reached agreement with unions on a cost-reduction programme and that while some of the arbitrator's recommendations remain under discussion with the pilots he expects that ballots will be undertaken shortly to secure agreement of all staff. It is anticipated that full year savings under the new cost-restructuring plan will amount to €97 million by 2012. The details of the new plan are entirely commercial matters for the Board of the company. A statement outlining the future direction of the airline was published on 26 January and is freely available.
Aer Lingus recently announced agreement on a new franchise arrangement with Aer Arann to enhance its short haul route network. The new agreement will serve key regional destinations linking them to the Aer Lingus Dublin transatlantic network and will significantly increase the Aer Lingus presence in the Ireland UK market.
In relation to the air travel tax the Deputy will be aware that policy responsibility for this measure rests with the Minister for Finance. I believe that the decline in passenger numbers at Airports cannot be attributed to the imposition of the travel tax. The economic recession has had a significant impact on consumer demand for discretionary air travel throughout Europe.
Competition and connectivity are the cornerstones of aviation policy. My Department's main objective is to assist airports and airlines to respond to the downturn in the sector, while maintaining the highest possible levels of connectivity between Ireland and key markets. In a global market, which is fully liberalised within the EU, the scope for measures to provide direct support to airports and carriers is very limited. The focus must therefore be on managing through a severe downturn and being well positioned for an upturn when economic circumstances improve.
Looking to the future, the challenge will be to ensure that Irish aviation is well positioned to take advantage of the economic recovery when it comes. To that end the Government will continue to support the development of an innovative-friendly, pro-competition regulatory framework for aviation. My Department is currently engaged in measures to enhance our bilateral relations with emerging markets such as India and China in support of the Government's Asia strategy. The continued roll-out of DAA's investment programme and introduction of US preclearance facilities will greatly enhance the experience of customers using Irish airports and will provide airlines with opportunities to develop and grow new services.
