Mr. Sean Brogan:

I thank the Chairman and members for the invitation. I will start by introducing Stobart Air, formerly Aer Arann. Stobart Air is a franchise flying specialist flying for three airlines: Aer Lingus, Flybe and CityJet. We employ 430 people, an increase of 100 in the past four years. Our airline is all about high frequency, regional connectivity and feeding passengers into onward air journeys. The Aer Lingus-Stobart Air partnership, which we operate under the Aer Lingus Regional banner, is proof of what can be achieved when a small airline partners with a larger one. The partnership started in 2010 and now operates 25 routes to and from 18 airports across Ireland, the UK and France. Aer Lingus Regional has increased its annual passenger numbers from 855,000 to 1.3 million in 2014, a 53% increase in just over four years. In the coming weeks we will fly our five millionth passenger. Aer Lingus Regional now contributes 12% of Aer Lingus overall passengers. The partnership is testament to the commercial relationship between our airlines. We have extended our contract to 2022. It is also testament to how far we have come from the brink of bankruptcy just over four years ago. We have broadened our route network, invested €150 million in new aircraft, increased our passenger numbers and added to our workforce. The returns from our partnership are evident when you consider how Aer Lingus Regional feeds passengers to the Aer Lingus transatlantic route. The combination of Aer Lingus, Aer Lingus Regional and the US immigration pre-clearance in Ireland is a massive advantage that no other country enjoys. Last year approximately 100,000 of our passengers arrived at Dublin, completed US pre-clearance and boarded an Aer Lingus transatlantic service to the US, or they arrived from one of Aer Lingus's North American services and boarded our aircraft to Dublin to connect onward. The advantages this offers consumers are significant. People can save up to two hours on a journey. Passengers also avoid the hassle of more queues on arrival at US airports. Nearly 100,000 transatlantic connections in 2014 is an 80% increase in just four years. It is a core part of our business. It delivers the passengers Aer Lingus needs to expand its North American network. Aer Lingus and Aer Lingus Regional will continue to increase transatlantic business. It is our belief that if IAG takes over Aer Lingus this growth could be achieved faster and on a larger scale. From a UK perspective, how can we get UK-originating passengers to choose Dublin instead of London, Paris or Amsterdam when travelling to the US? Last year, 4.3 million people travelled to London Heathrow from Aberdeen, Edinburgh, Glasgow, Leeds Bradford, Manchester and Newcastle.

These are all cities that Aer Lingus currently serves. Of these, at least 1.2 million passengers connected at Heathrow to other, mainly US, destinations. I will discuss Newcastle specifically. In 2014, Aer Lingus Regional carried 9,000 Newcastle passengers to or from the US through Dublin. A further 300,000 passengers from Newcastle used Heathrow, not Dublin, as their connecting point. These are passengers that Aer Lingus should win. As part of IAG, Aer Lingus can win them. Being part of a global airline family would fast-track the realisation of this opportunity. This would help our airline to expand, meaning more aircraft and more jobs. Aer Lingus would benefit from the passenger increase, as would Irish airports. The overall economy would also benefit, particularly from more inbound US tourists.

Consumers want choice and convenience, particularly when it comes to air traffic. Consumers like the convenience of one website visit, one click to book, one check-in, straight through from start to finish on their journey. An Aer Lingus alliance with IAG would realise these benefits for Irish consumers. To drive and survive, airlines must constantly seek out and secure new opportunities. Stobart Air believes that the IAG offer is such an opportunity. The partnership of Stobart Air with a larger airline has enabled it to grow and has delivered significant consumer and employment benefits to the economy. I believe the same can be replicated on an even larger scale if Aer Lingus joins forces with IAG. That is why Stobart Air is backing the IAG bid for Aer Lingus.