Ms Rose Hynes:

I thank the Chairman and members for inviting me to attend. I am delighted to have been appointed chairman of the IAA on an interim basis on 12 January 2021 by the Minister for Transport, Deputy Eamon Ryan. I am accompanied by Mr. Diarmuid Ó Conghaile, the IAA regulator and CEO designate of the new IAA, who was appointed on 1 January 2021. He has not previously met the committee.

In addition to my day-to-day responsibilities as chairman, I was requested on appointment to focus on guiding the IAA’s regulatory reform process. We have made significant progress to date in preparing for the restructuring of the IAA. I have included my background and professional experience details in the statement submitted to the committee. I have over 30 years’ aviation experience across all aspects of the industry, as a senior executive and at board level. Additionally, I have multisectoral experience in corporate restructuring and comprehensive experience in board and corporate governance as chair and non-executive director.

The Air Navigation and Transport Bill will result in significant institutional change when enacted. It will ensure Irish aviation continues to be served by a regulatory regime which is internationally respected. The Bill provides that the commercial air navigation functions of the IAA will transfer to AirNav Ireland, a newly incorporated semi-State company. The IAA will continue to have its primary role as the regulator and will absorb the regulatory functions of the Commission for Aviation Regulation, CAR, to form a single national regulator for aviation. Extensive work continues within the IAA on all practical measures necessary for the separation, in anticipation of the Bill becoming law. This is no small task as the largest part of the current IAA, its staff and resources, is transferring into AirNav Ireland. Currently the IAA employs over 700 staff in six locations across Ireland. In addition to the effective discharge of my statutory functions, the board’s focus is to ensure the timely delivery of the transition arrangements. This includes appropriate oversight of decision-making, governance, financial preparations and the implementation of HR strategy. We have made significant progress and are working to ensure the necessary conditions are in place for vesting day.

On the air accident investigation unit, AAIU final report, speaking personally and on behalf of the IAA, I again express our deepest sympathy to the families, friends and colleagues of the four crew members of Irish Coast Guard R116, Captain Dara Fitzpatrick, Captain Mark Duffy , winchman Paul Ormsby and winchman Ciarán Smith, who tragically lost their lives while undertaking a rescue mission on 14 March 2017. We have welcomed the publication of the AAIU’s independent and comprehensive report into the accident, which we believe will contribute to the prevention of future aviation accidents. We fully accept the recommendations addressed to the IAA, are in the process of fully implementing them and will verify our progress in this regard to the AAIU. As the aviation regulator for Ireland, the safety of air crew and passengers is our number one priority. We are fully committed to working with all stakeholders to achieve this aim, including the implementation of all safety recommendations in the AAIU report.

I will speak on industrial relations, IR, matters. Following the outcome of the mediation process, the IAA and staff representative bodies are working to implement the several recommendations which are contained in a confidential report from the mediator, Mr. Kieran Mulvey. All recommendations will be actioned by the IAA and some have already been actioned. It is important to note that the safety culture and commitment to safety of the IAA air navigation safety provider has remained robust through this period of IR issues.

Concerning aviation recovery, in 2020 and 2021 the reduction of traffic handled by the IAA was nearly 60% relative to 2019. I was about to say we are experiencing a recovery but the problem is that now with the fourth wave, it is difficult to know where we are going. Members might have seen Michael O'Leary saying airlines are in for a fraught period between now and the new year.

On the financial side, Covid-19 directly impacted the IAA’s performance in 2020 and 2021. The group reported a modest operating profit in 2020 of €2.1 million, compared to a profit of €27.8 million in 2019.

I will finish on something positive. New opportunities include drones, which represent the potential to be the next great disruptive technology in our lives. The IAA recognised the growth of drones early and in 2015 Ireland was one of the first countries in the world to start registering drones and authorising operations. Other areas of opportunity, as I see them, include the production of sustainable aviation fuel in Ireland and the digitisation of aviation records.

My role as chairman is to lead and support the board and management and continue to focus on guiding the IAA’s regulatory restructuring process. I thank my colleagues on the board and across the IAA for their support and assistance over the past number of years. I thank members for their attention and am happy to take their questions.