Martin Cullen (Waterford, Fianna Fail)

My officials are in contact with the US authorities to explore what adjustments to the Ireland-US arrangements are possible. An informal meeting took place on 7 February when senior US officials were in Dublin for a seminar on aviation regulation organised by the Institute of European Affairs. No conclusions were reached at that meeting.

It would not be appropriate to disclose Ireland's position during the course of these discussions. However, I am aware the new board of Shannon Airport is required to produce a business plan for the airport. The clarity on the open skies issue will be helpful to that business planning process. I am also aware that Irish airlines are restricted in the routes they can serve under the existing bilateral arrangement. Expanding scheduled transatlantic services is of great importance to the growth of Irish airlines and tourism.

Whatever new arrangements are agreed, Shannon Airport must remain an attractive destination in America, particularly on the east coast of the US. Aer Lingus has said there is a strong transatlantic market for Shannon and it will continue to serve that market. Any change in Ireland-US arrangements will open up new destinations in the US for Aer Lingus, presenting new opportunities for Shannon. I am convinced that Shannon, with the right cost base for the airport and with the proper competitive environment, can maintain and grow its transatlantic business.

European Regulation 847/2004 permits member states to negotiate with third countries, including the USA, after informing the European Commission of the intended negotiations. The European Commission was informed of Ireland's contacts with the US, and a Commission representative was present during previous Ireland-US discussions in May 2004.

On 16 March 2005 the European Commission sent infringement letters to 20 EU member states, including Ireland, that have bilateral air transport agreements with the US. The letter was received by Ireland on 21 March 2005. While this letter does not relate to current discussions with the US, the Commission expresses the view that due to certain aspects of its bilateral aviation agreement with the US, Ireland has failed to fulfil its obligations under the treaty establishing the European Community. The Commission has asked for a response within two months of receipt of the letter. This is a complex matter that must be carefully examined before a reply can be issued.

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