Mr. Willie Walsh:

I believe that Ireland has done a fantastic job in attracting all of the major aircraft lessors to the country. The added benefit that derives as a result of that industry is fantastic. We should not take it for granted. I can tell the committee there are a lot of other countries who would see that as an opportunity for them to try to attract this business away from Ireland. We have a lot of advantages, including our history in that area, the legal system in Ireland, and the expertise we have here.

When it comes to manufacturing aircraft parts, we do not really have a history of it. There is a much bigger industry in Turkey, hence the reason they were able to insist on that. It is part of the government ambition there to be bigger in that field. There are some opportunities but trying to compete in the area of manufacturing parts for aircraft is extremely difficult, given the competition that already exists around the world.

The use of sustainable aviation fuels is a critical issue for our industry.

We are committed to achieving net zero in 2050. In 2050, we expect that approximately 65% of the contribution towards net zero to come from sustainable aviation fuels. The industry used every single drop of sustainable aviation fuel available to it last year and will do the same this year. That is despite the fact that, on average, a tonne of sustainable aviation fuel costs two and a half times as much as a tonne of jet kerosene. Despite the very significant premium, airlines are still buying it. In my opinion, sustainable fuel will always come at a premium until we get widespread production. At the moment, we are seeing low levels of production. As the Deputy has quite rightly highlighted, many airlines are hedged for their fuel requirements in 2022. Some, if not all, of that hedging will start to unwind in 2023 and more airlines will be exposed to the high spot price of jet kerosene we are seeing today. That will have an impact on prices. We need to be realistic. If the cost of fuel and the net cost airlines are paying, given that it is the single biggest element of an airline's cost base, both continue to rise, this will ultimately find its way through to the price of tickets. There is no way airlines can absorb the significant increase they have witnessed, particularly on the back of two to three years of very significant losses. The Deputy is right to highlight that as a potential headwind that could impact in 2023.