Noel Dempsey (Meath West, Fianna Fail)

I thank Members for their questions. Hopefully I will be able to clarify this matter as there appears to be some confusion among them.

A media article on 13 June 2007 reported the possibility of Aer Lingus opening a new base at Belfast. Aer Lingus confirmed that a number of possible locations were being considered. Following a query to the company by my Department on foot of that article, the company, on 13 June, indicated it was considering the opening of a new base at Belfast and that, were the proposal to proceed, there would be implications for Shannon. An official conveyed the Department's concerns from the perspective of aviation and regional policy regarding the implications for Shannon and asked the chief executive to give full consideration to the ways in which a new base might be accommodated before arriving at a decision, which he agreed to do. The matter was not brought to my attention.

Subsequently, an official of the Department contacted Aer Lingus on 27 July arising from a query to the company on industrial relations matters. Again, it should be noted that contact was initiated by my Department. In the course of that conversation, it was confirmed that the company's plans for a new base had solidified and that a formal announcement was to be made on 8 August. It was also confirmed that opening the new Belfast base would entail the reallocation of Shannon to Heathrow slots to Belfast from early 2008. The official expressed concern regarding the impact of the loss of a Shannon to Heathrow service from an aviation and regional policy perspective, emphasised the importance of Aer Lingus's commitment to Shannon and indicated that these matters would be raised with the chief executive of the company.

In an e-mail to my private office on 27 July, the official stated the company intended to announce the new Belfast base on 8 August, which would entail the reallocation of Shannon to Heathrow slots to Belfast from early 2008, and referred to the concerns he had raised. A meeting with the chairman and the chief executive was arranged for the earliest opportunity, that is 3 August, to enable me to discuss these matters with the company. At the meeting on 3 August with the chairman and chief executive of Aer Lingus, I was informed of the decision to open a hub in Belfast and the reallocation of all the Shannon to Heathrow slots to a new Belfast to Heathrow service.

A number of Deputies have asked questions regarding the period between 13 June and 27 July. It is important to make clear that officials were keenly aware that the company was in an offer period until the end of June, which meant that information obtained from the company had to be treated with absolute confidentiality. Even outside an offer period, the rules related to quoted companies impose tight confidentiality requirements relating to price-sensitive information. Aer Lingus did not indicate until late July that it had made a final decision. When contact was made in June, no decision had been taken and the company had agreed to reflect on the concerns raised by the Department.

As has been pointed out repeatedly in recent weeks, Aer Lingus is free to make such commercial decisions. It was clear from early August that the company was steadfast in its decision although the implications for Shannon had been brought to its attention and, as it stated, had been considered fully by it. Although the deeply-felt concerns of business and tourism interests in Shannon are well understood, it remains the case that Aer Lingus has not been convinced that there is a commercial case to reverse its decision.

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