Oireachtas Joint and Select Committees

Thursday, 2 April 2015

Joint Oireachtas Committee on Transport and Communications

Proposed Sale of Aer Lingus: (Resumed) Virgin Atlantic Airlines

10:30 am

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

I welcome the representatives of Virgin. I wish to ask some questions on the interline agreements. Is it fair to say there is nothing stopping IAG from entering into an interline agreement with Virgin tomorrow morning, for example? In that case, does this have more to do with the commercial impact on Virgin than any potential impact on the travelling Irish passenger? What is the nature of the arrangements already made? Does Virgin have interline agreements with KLM and Air France? Does Virgin have any interline agreements with Austrian Airlines, Swiss International Air Lines or Lufthansa? Has Virgin had any interline agreements with other entities, such as Iberia, which is now part of IAG? If so, did they continue?

Mr. Thompson said that both of the hubs that were channelling most of the traffic through to Ireland were operated by Virgin's principal competitor. That is fair enough, but there has been nothing stopping Virgin down through the years, or since 1984, from operating out of Ireland. All of a sudden Virgin has a major interest in Ireland. Is it not remarkable that Virgin's first public interest in Ireland comes about when someone is offering to buy the minority stake in the airline? While Mr. Thompson may be agnostic with regard to whether Virgin is in favour of or against it, does it not smack of good timing that Virgin now has an interest in what the Irish travelling public might or might not want and yet over the past 30 years, Virgin has chosen not to service the island at all?

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