Oireachtas Joint and Select Committees

Tuesday, 17 February 2015

Joint Oireachtas Committee on Transport and Communications

Proposed Sale of Aer Lingus: (Resumed) Aer Lingus and Stobart Air

5:00 pm

Photo of Timmy DooleyTimmy Dooley (Clare, Fianna Fail) | Oireachtas source

That is fine.

I am astonished by Mr. Barrington's statement that he is not sure whether Aer Lingus would have its own board after an amalgamation. It is amazing that the decision was taken to recommend the proposed amalgamation on the basis that it would be of benefit to Ireland, Aer Lingus customers and the economy as a whole, without having first clarified this fundamental issue to ensure the company would not be fully integrated into IAG. It is revealing that the board did not even establish the position in this regard before it made its recommendation.

Mr. Brogan spoke about how important it was for Stobart Air and Aer Lingus to come together. I put it to him that in coming together with Aer Lingus, Stobart Air redeployed assets when it suited and moved the aircraft it had in Shannon Airport to a more a profitable operation. I assume this was done to secure a public service liability funded route from Donegal. While acquiring this PSO route may be good for the company and its shareholders and may deliver increased profit, Mr. Brogan will be aware that the move was made at a time of significant growth in passenger numbers on Stobart Air's routes in Shannon Airport. He failed to provide data for the period from September to December 2014, which would show that growth was continuing. I ask him to circulate this information to allow members to evaluate it. If, as has been suggested, Aer Lingus relinquishes control, it will eliminate its capacity to deal with issues of regional importance.

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