Dáil debates

Wednesday, 7 June 2006

3:00 pm

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)

Since the start of this process, I have been direct, open and straightforward with all the unions. They know and appreciate that. I have also behaved similarly towards management and have no difficulty with meetings or consultations. While I have been clear on the issues, some of which were raised by the Deputy, I will not comment on them now. They are part of the process and I wish to see conclusions drawn on them.

I accept that, from an ideological perspective, some people are opposed to the sale. While that is fair and while I respect their position, it does nothing to develop the company into the future. Although the Deputy mentioned another airline, despite the efforts of some to suggest otherwise, there is no comparison between it and Aer Lingus. The other airline has been a loss-making company for the past five years and it operated in a different type of market to Aer Lingus.

Aer Lingus is profitable. For a company to go to the market, it must be profitable. It is, therefore, the right time to do so. The business plan presented by Aer Lingus is significantly geared towards the future. I negotiated the open skies deal from an Irish perspective with regard to a transition period for Shannon. I travelled to the United States and met the Secretary of Transportation, Norman Mineta, and have had close relationships with the EU Commissioner for Transport, Jacques Barrot. I have engaged in considerable dealings with the various EU presidencies regarding this issue. This is the right time for growth in airports, airlines and passenger numbers. I do not accept the Deputy's view that passenger numbers will decrease.

While the question of fuel is undoubtedly an issue for all airlines, Aer Lingus has coped well in this regard. All international long-haul airlines, including Aer Lingus, have a fuel surcharge and it has not affected passenger numbers. Those airlines which state that they do not levy a surcharge are short-haul operations. I understand that no short-haul operations have added surcharges on short-haul routes.

When everything is considered, it is evident this is a good period. I appreciate the work being undertaken by the unions with the management in the company. I also appreciate the work of all those who advised the unions, the Minister for Finance, his Department and me. It has been a good process, which has been very communicative. However, it must come to a conclusion. We are ready to go to the market and we must do so. It is the correct thing to do to provide Aer Lingus with a major future. Failure to do so would cripple the airline and tie its arms behind its back, making it impossible for it to compete on a level playing field. Neither I nor the Government will preside over such a scenario.

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