Oireachtas Joint and Select Committees

Tuesday, 3 February 2015

Joint Oireachtas Committee on Transport and Communications

Proposed Sale of Aer Lingus: Discussion (Resumed)

11:00 am

Photo of Eamonn CoghlanEamonn Coghlan (Independent) | Oireachtas source

I am somewhat confused. As Senator Barrett indicated, in a recent poll, 58% of respondents said they were against the takeover and 21% said they were in favour of it.

I do not know whether I am for or against it. The people who are against it say the implications are enormous. Job losses have been mentioned as well as the potential to lose the slots. The connectivity between Dublin and the regional airports has been mentioned also.

Those for the proposal say it is a good development because IAG is in a much stronger position financially to grow tourism in Ireland. It sees value in the Aer Lingus brand and it can probably provide direct access to the routes and the services indicated that Aer Lingus cannot currently do. If the sale goes ahead and IAG takes over Aer Lingus, it will not become a dead duck because IAG sees the ability to grow tourism and improve direct access to Ireland for businesses.

What is clouding everybody's view of this issue is the emotional chord. Aer Lingus is Ireland. When an Irish person gets on a plane in New York, London or Spain, they feel they are at home, which is not the case when they board any other airline in the world. Our emotions are taking over in this debate.

The other side of the coin is the potential political fallout. When Aer Lingus was put up for sale by the previous Government some years ago, I do not know whether there was as much debate about it then as there is now. It must be remembered that the Government only holds 24% or 25% of the shares in the airline. If it decides to sell them, where does that leave Ryanair, which will carry 100 million passengers? Could it block the sale? Will this deal be good for Ryanair? If the sale goes ahead, do the witnesses believe that IAG, with its strength and power, will sabotage what we already have or grow business for Ireland?

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