Oireachtas Joint and Select Committees

Wednesday, 14 December 2022

Joint Oireachtas Committee on Transport, Tourism and Sport

National Aviation Policy: Aer Lingus (Resumed)

Ms Lynne Embleton:

Rather than reading out the statement, I will highlight some key areas we believe are important. Having a robust and implemented national aviation policy is critical to Ireland. As we know, airlines connect people, businesses and places, and bring social and economic benefit to the country. It was recognised in the current aviation policy that the estimated value of aviation to Ireland in 2019 was some €8.9 billion in GDP contributions from air transport. A connected country attracts inward investment. Aviation is important for every country but never more than for an island nation.

Breadth of connectivity needs a hub. There is an exponential effect on the breadth of routes that can be served by operating a competitive hub. That brings me to the first area, namely, infrastructure. We very much welcome the opening of the second runway at Dublin Airport but that is only part of what is required. What is critical is the corresponding infrastructure, including piers, stands and flow through the airport, that allows Ireland to make the most of that second runway. Such infrastructure is necessary for an efficient, competitive and attractive hub that will bring more flights and more passengers to Ireland. We believe we need to see the rapid development of that infrastructure in Dublin. Accordingly, we also believe the planning process around infrastructure development needs to recognise the important national infrastructure that is the subject of that planning.

I will turn to the matter of regulation. We believe the economic regulation of key airports is critical. We have seen that in the outcomes of economic regulation in the past few years, where the costs that emerged from that allowed the airlines to develop flights and to bring more passengers into airports. We believe economic regulation plays a very important role in ensuring Ireland's aviation is competitive.

I will now move to the third and, arguably, the most important area which is that of sustainability. We know flying is a force for good but carbon is the problem. IAG has been and is the leader among the airline industry in the area of sustainability. We were the first airline to commit to net zero by 2050 and that is a commitment the industry has now followed. We were the first European airline group to commit to 10% sustainable aviation fuel by 2030 and we are the only European airline group, and one of only two airlines globally, to achieve the A rating in the core carbon disclosure project. We are completely committed to sustainable aviation. There is a pathway. We need financially healthy airlines to be able to invest in new technology and, indeed, in Aer Lingus we have bought new-generation aircraft into our fleet even this year. Those new generation aeroplanes are significantly less carbon emitting and quieter for communities.

Single European Skies will play an important role in reducing carbon emissions. It is technically feasible and needs political will.

Importantly, while new generation and yet to be developed technology can reduce carbon on short-sector flights, for long-haul flights, which are critical to Ireland and the connectivity across to the United States, for example, that will require sustainable aviation fuel, SAF. Aer Lingus has signed deals this year for sustainable aviation fuel. We are willing. The issue that needs to be tackled is the availability of sustainable aviation fuels. The technology exists. The US has a policy to incentivise the creation of a SAF industry in the US. The agreements which we have signed are linked to west coast US flying, which will enable us to put sustainable aviation fuel into our flights.

The EU, and I would argue particularly for Ireland, should urgently look to develop a SAF industry to create jobs, to support the economy, but importantly, to support a sustainable aviation industry. The airlines are willing and the SAF needs to be developed.

In conclusion, we believe the current policy is appropriate. It is more relevant than ever but it needs to be urgently and efficiently implemented.

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