Oireachtas Joint and Select Committees
Wednesday, 28 October 2020
Joint Oireachtas Committee on Transport, Tourism and Sport
Issues Affecting the Aviation Sector: Discussion (Resumed)
Mr. Dalton Philips:
I really hope the Senator is right. The reality is that airlines' balance sheets have been stretched to enormous levels, so airlines are having to massively restructure their own businesses and downsize them. What they are doing is getting rid of the aircraft. A new route can cost about €3 million per year to get up and running. That is the sort of cash burn one loses when starting a new route. When one starts a new route one does so with a long-term horizon and to be going back to airlines now and saying, "Invest €3 million in a route to Cork, to Shannon or to Dublin" is going to be a really hard ask. We are out of kilter with the rest of Europe because we are the most closed. There is absolutely a balance-----
No comments