Oireachtas Joint and Select Committees

Tuesday, 3 February 2015

Joint Oireachtas Committee on Transport and Communications

Proposed Sale of Aer Lingus: Discussion (Resumed)

11:00 am

Mr. Adrian Cummins:

I am here in my capacity as chief executive of the Restaurants Association of Ireland. On behalf of the association I thank the Chairman and committee for inviting me here to speak on such a crucial issue for the tourism industry in Ireland. The Restaurants Association of Ireland represents more than 1,700 restaurant owners and small businesses in every county and constituency in this country. A substantial 45% of people involved in the tourism industry work in the restaurant sector.

The proposed sale of Aer Lingus to IAG should not be rushed and whatever decision is made must be considered in the national interest. Hasty decisions will result in the loss of a national asset that is respected worldwide. Last week the committee heard from Chambers Ireland, trade unions and Shannon Airport. I do not intend to go over old ground covered by the committee but to set out how the restaurants sector in Ireland views the proposed takeover. Tourism numbers in Ireland have returned to 2008 levels after five lengthy years of despair and hardship, especially for small tourism businesses. Markets that have seen significant growth are North America, mainland Europe and long-haul destinations, all of which have proven that access is paramount for tourism levels to continue growing.

It gives me great pleasure to mention Ireland’s flagship tourism project, the Wild Atlantic Way – 2,000 miles of a national treasure which has proven to be one of the greatest economic generators for the west coast. This project is reliant on Ireland’s aviation connectivity with the world. When tourists arrive in Shannon and Cork airports they expect to start their journey on the world’s most written about, iconic and talked about tourist routes. Yesterday, when IAG released its statement giving the Government legally binding assurances to protect the 23 London Heathrow slots for five years, it was a step in the right direction. It gave some reassurance to our all-important tourism industry but it did not go far enough in my opinion. There was indeed something missing from the IAG statement, namely, the safeguards for Cork and Shannon airports with regard to connectivity to London Heathrow. Also omitted from the statement was any reference on the future of the Aer Lingus regional brand servicing Kerry, Cork and Donegal.

I suggest that the Government would give a commitment to the effect that the details of the proposed sale would be laid before the Oireachtas, as provided for under section 3 of the Aer Lingus Act 2004. As an island nation, Ireland is very dependent on connectivity and the tourism industry strongly depends on access to the country. It is simple; the more access, the more tourists will visit our wonderful island. The Restaurants Association of Ireland is opposed to the sale of Aer Lingus if there are no long-term, cast-iron guarantees that the 23 Heathrow slots are safeguarded for Cork, Shannon and Dublin airports.