Oireachtas Joint and Select Committees
Wednesday, 19 May 2021
Joint Oireachtas Committee on Transport, Tourism and Sport
Issues Affecting the Aviation Sector: Discussion (Resumed)
Mr. Willie Walsh:
I agree with the Deputy on the digital green certificate. That would be a step forward. At IATA, we have argued that there should be a common standard in order that airlines and governments can fully satisfy themselves that people travelling meet the criteria and where somebody has been vaccinated that they can provide evidence of it. Regardless of what we might think as to whether vaccination should be a requirement for travel, some countries will make it a condition of entry. We have already heard a number of countries say that it will likely be the case. Having a robust and verifiable system that can be checked and satisfied is important.
On EU restrictions, I have described the arrangements in Ireland to be repressive. I have heard people almost cheer the fact that Ireland has the most restrictive arrangements as if it is something good. I do not see it that way. This is particularly dangerous for a country like Ireland where the message being sent out is that we do not want people travelling to the country. For a country that has always been open, as well as dependent on emigration and foreign investment, such a message sent out around the world is particularly worrying.
Other EU countries do not have similar restrictions. I am living in Switzerland - I accept it is not an EU country - but I have travelled into Spain without any restriction. One must provide an antigen test before one can travel into Spain. Coming back into Switzerland, one needs to have a PCR test. To travel to the UK, where more restrictive arrangements are in place, a PCR test is required or an antigen test and one can self-isolate. There is not a common standard. Some countries require PCR testing to be taken within 24 hours of travel, others, 48 hours, and others, 72 hours. One would think that the EU should be able to align on a simple issue like that. If it is okay for some countries to accept a test taken within 72 hours, why is it not acceptable for all? Some require it to be taken by everybody including newborn children. Others, like Ireland, require the test for children above the age of six. In some cases, it is for people above the age of 18. A common standard is not being applied across the EU. Some countries are more open than others. In the main, some element of restriction is in place.
It is regrettable that Aer Lingus has had to take the decisions it has. It must be remembered Aer Lingus is not vying on the transatlantic routes. The transatlantic operation from Shannon is particularly seasonal. It has always been heavily dependent on US inbound traffic, particularly so during the summer season. This summer season is wiped out, the second summer in a row in which Aer Lingus will not be able to bring people from the US into Ireland. While Irish citizens are restricted in terms of entry into the US under law, there is no restriction on US citizens travelling out of the US or back into the US.
It is deeply regrettable that Aer Lingus had to take this decision but I do not see any way of avoiding it. It is in a deep financial crisis. While the Deputy is correct that it had access to an ISIF loan, that has to be repaid. The damage done to airlines through this crisis is huge with the additional debt burden that has been taken on. Those debts have to be repaid and this will impose significant restrictions on how airlines operate. It will be particularly true in terms of the appetite they have for financial risk, which will seriously restrict the level of capacity that comes back into the market once travel restrictions are removed. I have no inside knowledge of how Aer Lingus is thinking but I do not see how it would be possible for Aer Lingus to recreate the transatlantic network that it operated in 2019 once things get going. It is going to take many years to see the transatlantic network built up again.
On the Shannon slots, I always said people did not have anything to fear. I do not have any inside knowledge as to how things are operating now but when I was at Aer Lingus and IAG, those routes were operated on a profitable basis. People should have nothing to fear. If the demand is there, I guarantee Aer Lingus will want to serve it. It always has and I believe it always will. People should not be concerned about the continuity of that service, provided the Government removes restrictions. If travel restrictions continue, then it is inevitable that these routes cannot be operated.
No comments