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 Patrick O'DonovanPatrick O'Donovan (Limerick, Fine Gael) | Oireachtas source

While I apologise for being late, I caught most of the presentation on the monitor. The witnesses might forgive me if some of the questions I intend to ask already have been asked. On the presumption the witnesses have watched the joint committee's proceedings up to now in respect of the stakeholders that have appeared before members, I also presume they saw the presentation last week by Mr. Walsh, the chief executive officer of British Airways. Specifically, last week he gave a commitment to Shannon and Cork in respect of the Heathrow slots but did not elaborate on transatlantic flights from the perspective of Shannon Airport. In addition, he was somewhat reluctant to extend what is a five-year commitment beyond that. I seek the witnesses' thoughts in this regard because from the point of view of the joint committee, the greater the commitment members can get, particularly for Shannon and Cork, the more that clarity will enter this debate.

I congratulate Mr. Kavanagh on his appointment. How does he think the decision of Aer Lingus to come out in favour of the offer will be perceived in a region out of which Aer Lingus walked the last time there was talk of such a sale? The bona fides of Aer Lingus in the mid-western region are not great because when the first tranche of shares was sold, Aer Lingus hightailed it out of Shannon Airport at the first opportunity. When the 75% stake was sold, Aer Lingus left Shannon and left a sour taste in the region as a whole. Does Mr. Kavanagh accept there is good reason for people, particularly in the mid-west, to be sceptical of what Aer Lingus now advocates based on previous experiences? In addition, I note from the documentation received that the company's position has received board approval. Mr. Kavanagh should elaborate on this board approval. Was it unanimous? Was there a vote at the board and were there dissenting voices or abstentions on the board? The company has come clean, for want of a better phrase, on how it perceives the offer made by International Consolidated Airlines Group, IAG, to the Government. Perhaps this is an opportunity for Aer Lingus to go the extra mile and throw out the whole lot as regards what were the deliberations within the board that resulted in the board giving its green light to the purchase.

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