Oireachtas Joint and Select Committees

Wednesday, 14 December 2022

Joint Oireachtas Committee on Transport, Tourism and Sport

National Aviation Policy: Aer Lingus (Resumed)

Mr. Reid Moody:

-----but there are three areas. What small or medium-sized airports that are non-regulated tend to do to encourage traffic would be to say it will give us a period where it will reduce the landing fees or the terminal charges. Outside of that, regional bodies such as tourism or business bodies could put subsidies together to encourage that - on the tourism side, from the tourism bodies and on the business foreign direct investment side, from any of the business communities. The third piece is more on a national level where there are development funds targeted at specific areas. That would be the general way it works.

We at Aer Lingus always want to look carefully at the long-term structure of the route because if artificial funding or a shot of adrenaline is given that lasts a couple of years, we do not want to be the kind of business that goes in for a couple of years, takes that and then leaves. There has to be some basic economics to this as well in terms of the supply and demand. As for my earlier comment, anything the region can do and anything the State can do to encourage as much inward tourism as possible to organically lift demand for the country gives us a much firmer footing long term. Then we have the support for the first two or three years to give us that little bit of risk reduction. However, it has to be twofold. That initial support is needed but there also needs to be the underlying demand, and that underlying demand can be a steady state or it can be an organic growth.

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