Martin Cullen (Waterford, Fianna Fail)

Due to market and regulatory constraints I am restricted in what I can say to the House on the matter.

It is the Government's firm belief that Ireland's strategic interest in aviation is best served by the provision of regular, safe, cost-effective and competitive air services linking the country to key business and tourism markets around the world. In developing our overall aviation policy, the Government has sought to promote competitiveness, flexibility and consumer choice and, in particular, a diversity of product offerings to satisfy different consumer needs. This includes point-to-point services operated by low-cost carriers. It also provides for services that facilitate onward international connections through access to hubs and interlining with other carriers.

On the basis of the information available to date I do not consider the Government's and Ireland's strategic objectives would be well served by a takeover of Aer Lingus by Ryanair. It clearly raises fundamental questions for aviation policy, competition and regulation issues. All these questions are being examined carefully.

The Government remains fully committed to competition in aviation markets. It will not be selling its shares in Aer Lingus. It is rigorously opposed to the emergence of a new monopoly in Irish aviation. With the State's shareholding in excess of 25.1%, it ensures another company cannot acquire the 75% threshold that is required to force de-listing. The State's shareholding is 28.3%. It also means that the Aer Lingus's memorandum and articles of association cannot be changed.

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