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 Brian WalshBrian Walsh (Galway West, Independent) | Oireachtas source

I thank the witnesses for their presentations. The evidence they and Mr. Walsh presented to the joint committee has provided a compelling argument in favour of the view that the proposed deal would be good for Aer Lingus and Ireland. Having said that, there are concerns about access and potential job losses in Aer Lingus.

The Chairman raised some of the questions I had proposed to ask. If the deal does not proceed, is there a danger that Aer Lingus will have put all of its eggs in one basket? Does it have a growth strategy of its own and, if so, what is it? Would Aer Lingus, as a stand-alone company, survive another significant downturn in the aviation industry similar to that which occurred a decade ago? Considerable consolidation has taken place in the meantime. Could Aer Lingus survive another downturn in aviation?

Are the witnesses concerned about the prospect of job losses among Aer Lingus staff? Mr. Walsh indicated that a certain amount of duplication of roles would result in some job losses? Is Mr. Barrington in a position to quantify the number of job losses that might arise? Is it a significant number?

Reference was made to the potential for growth in long-haul services owing to the pre-clearance facility in Dublin and Shannon airports.

What is preventing Aer Lingus from investing there at the moment? Am I missing something? Is there a restriction? Mr. Barrington mentioned the potential for 2 million passengers to pass through Dublin and Shannon airports to the US. What is stopping Aer Lingus from availing of those opportunities now?

Much was said at last week's meeting about the slots and the five year cast iron guarantee that IAG will give. What is Mr. Barrington's view on the slots? In the absence of the deal proceeding, has Aer Lingus an imminent plan for them? Can the company provide a similar guarantee to IAG for Shannon and Cork airports?

We have an airport in Galway which is in a dormant state. Arising out of the investment and the capital that might arrive as a result of the investment, does Mr. Brogan envisage opportunities for Stobart Air to enhance its services from regional airports around the country? Would he be prepared to look at Galway airport again?

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