Oireachtas Joint and Select Committees

Wednesday, 6 February 2019

Joint Oireachtas Committee on Transport, Tourism and Sport

Impact of Brexit on Transport Sector: Discussion

Mr. Liam Keogh:

I will address the points made in reverse order.

On the issue of control and ownership, as the Senator accurately reflected, there is a significant issue with the licensing of the main Irish carriers, Aer Lingus, Ryanair and Stobart. The airlines are aware of it. Regardless of Brexit, the ownership and control issue is a feature of airline licensing, not just within the European market but also across the world. With respect to their articles of association, airlines' bread and butter are keeping their licences in conformity with the regulatory rules for ownership and control. It is nothing new, but obviously Brexit will have a big impact. Airlines are making the necessary arrangements to be compliant from 29 March. They have sought a time extension. Supported by other member states, Ireland has pressed the case for flexibility with the European Commission in order to reflect current circumstances, that we are in the middle of February and still there is still no clarity on status after 29 March.

The Commission has agreed to a new provision within the contingency connectivity regulation to allow a seven-month grace period subject to certain onerous, although not insurmountable, conditions to allow sufficient time. The airlines have welcomed it as providing a little bit of breathing space. There is a commitment on the part of the airlines to remain compliant with the rules. It is a highly regulated sector and the airlines concerned are highly compliant with all of the rules and regulations related to their licensing conditions. We are reasonably confident. We have had many consultations with the airlines concerned through the national civil aviation development forum. We have also consulted the European Commission and CAR, which is the national competent authority, and will continue to do so until we are certain there is no risk involved. We are currently reasonably assured that there will be no disruptions of services as a result of the ownership and control rule.

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