Martin Cullen (Waterford, Fianna Fail)

In November 2005 EU and US negotiators concluded work on the text of a first phase EU-US open skies agreement. The text was unanimously endorsed at the December 2005 Transport Council subject to sufficient progress by the US side on opening up ownership and control of US airlines to EU investors. The formal US process of changing its ownership and control rules was expected to be concluded early in 2006 so that a final decision could be taken at the June Transport Council. However, the rule-making process has been extended and is now expected to be concluded in August and the matter will be considered by the October Transport Council.

As part of the EU-US deal I met with US Secretary for Transportation, Mr. Norman Mineta, on 9 November 2005 to negotiate transitional arrangements for Shannon which were included in the EU-US text. This provided that the 1:1 Shannon stop requirement, that is, one stop at Shannon for every stop at Dublin, would change to 1:3 for the period November 2006 to end March 2008, after which the Shannon stop requirement would end. During the transitional period access to three additional US destinations would be allowed.

It has been agreed that these transitional measures will take effect at the end of October if the necessary political agreement is reached at the Transport Council earlier that month. The opportunities that an open skies agreement will present will complement the possibilities for expansion of services from Ireland in an east bound direction as well.

The legal framework for the IPO and sale of shares in Aer Lingus and related matters is provided for in the Aer Lingus Act 2004. Some parts of the Act have already been commenced. I propose to make arrangements for commencement of the appropriate parts of the Act as and when required to implement the IPO. Most of the provisions will only need to be commenced immediately before implementation of the IPO.

Legal advisers to the Minister for Finance and I have made clear that financial securities laws restrict the release of important information about Aer Lingus. Failure to observe the publicity restrictions could require postponement of the offering or result in civil or criminal penalties. I am advised that no opinions or speculation should be given concerning the success of the flotation or about the business, financial condition or future prospects of Aer Lingus. The prospectus to be issued of the transaction will set out comprehensively its investment case for shares in Aer Lingus.

I commend the motion to Dáil Éireann.

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