Paschal Mooney (Fianna Fail) | Oireachtas source

I welcome Mr. Walsh, who obviously has to hand an impressive array of statistics. However, in light of all the popularity Mr. Walsh suggests British Airways enjoys in respect of its statistics and passengers, I do not understand why it simply does not come in to Dublin. Why does British Airways not operate transatlantic flights? Why must it take over Aer Lingus in order to develop its business out of Dublin? In the context of the guarantee, I acknowledge Mr. Walsh has stated that he will have a bank of lawyers and the Government will have the same. However, I suggest to him that the five-year rule is not legally enforceable. Does he not agree it is not legally enforceable because there are governance issues? The airline business is cyclical in any event and if it went through situations in which the board of IAG was obliged to revise its position, I suggest it would be legally obliged, because of governance issues, to so do and to work and act in the best interests of the company. Consequently, I suggest to Mr. Walsh the guarantee is not legally enforceable. Perhaps Mr. Walsh might have an opinion in this regard.

In the context of cost, Mr. Walsh has stated the existing flights out of Dublin into London would be retained. Again, I cannot see how Mr. Walsh can guarantee that because it has been proven time and again that where consolidation takes place, changes to trading patterns are inevitable. For example, costs rise, not fall, because there is less competition. As Mr. Walsh is aware, the Dublin to Heathrow route was one of the most expensive in the world at one point because of a cartel operated between Aer Lingus and British Airways. Mr. Walsh should answer in the context of what will be the plans for IAG on the Dublin-Heathrow route. Why would IAG continue to operate the same level of flights when it now would be in a position to reduce the number of those flights, while still controlling the Dublin to Heathrow route through the ownership of Aer Lingus? This could result in an increase in costs for passengers that would not be in the best interests either of passengers leaving Ireland or - of more relevance - those coming into this country. This is a real concern and of all the issues, the possibility that cost would increase is one of the two specific issues about which I am most concerned.

I invite Mr. Walsh to refute that view and indicate this would not happen. I also refer, of course, to the inevitable job reductions in a company Mr. Walsh has acknowledged is highly successful. It actually has increased its workforce in recent years by almost 1,000. Why then, if the consolidation primarily is being led by independent airlines rather than by legacy airlines across the world, particularly in Europe, is there any advantage to the Government in allowing IAG to take over something for marginal financial interest? There is absolutely no financial advantage in this regard.