Mr. Patrick Edmond:

I thank members for their invitation to come before the joint committee. I am attending in my role as group strategy director for Shannon Group plc, the semi-State company responsible for Shannon Airport. Shannon Group welcomes the recent statements from the Government that connectivity will be a key consideration in the proposed sale of Aer Lingus to IAG. We also welcome statements that it will take into account much wider issues than the potential monetary value of the State's shareholding in Aer Lingus.

Heathrow remains the single most important gateway for business to and from key international markets from Ireland. It is the only European hub served from Shannon Airport, which is the only airport in the west with a hub connection. Some 60% of passengers on the Heathrow route, Shannon Airport's busiest route, are travelling from outside Ireland and one third of passengers on the route are travelling on business.

Direct accessibility, as the committee has heard, is a key decision factor for multinationals which are looking to establish or grow their operations in Ireland and it is also essential for the competitiveness of indigenous businesses which are seeking to reach their export markets. IDA Ireland has been successful in recent years in attracting foreign direct investment into Ireland and the past year, in particular, has seen a series of wins in the mid-west and the west. The leaders of the companies involved, such as Regeneron, AMAX, Genworth and Zimmer, have been explicit in linking their location and expansion decisions to Shannon Airport connectivity and they are constantly seeking reassurances about that connectivity. Any reduction in regional access would thus jeopardise existing employment across these regions. It would make it far harder to attract significant further FDI and associated employment and, of course, it would also impair access for overseas tourists to the west of Ireland and to the Wild Atlantic Way.

This is not a narrow regional issue but a broader one of national economic competitiveness. Heathrow connectivity is vital for the country as a whole, but particularly so outside of Dublin. The language so far has been about protecting slots for Ireland at a macro-level, but that is not sufficient. Retaining Heathrow slots and connectivity for individual Irish airports, including Shannon, must be a priority if Ireland is to have a balanced regional economy.

We would, therefore, expect that any Government decision to sell the State's Aer Lingus stake to IAG would be conditional on an enforceable agreement which would have at least three key elements. First, it would safeguard service levels, with frequency of flights and their spread throughout the day, between Heathrow and Irish airports, including Shannon. Second, it would ring-fence these slots on an airport-specific basis rather than as an aggregate number for the whole country. Third, it would provide long-term clarity, for example, for 15 years or until a new runway is operation at Heathrow - whichever is earlier.

Time is tight this afternoon. I will conclude there and I would be happy to take any questions the committee may have.