Barry Andrews (Dún Laoghaire, Fianna Fail)

I thank the Deputy for raising this matter. He will be aware that the commercial decisions of Aer Lingus are a matter for the board and management of the company and that it is not open to the Government to intervene. Aer Lingus is an independent company and must make decisions on a commercial basis. It is understood the cost savings are necessary in order that the airline can remain competitive. These measures, we understand, will strengthen the long-term viability of transatlantic services at Shannon Airport.

The Government regrets the announcement by Aer Lingus of its intention to outsource part of its operations outside Ireland, with a view to reducing costs and maintaining its ability to compete in what we all accept is a very challenging aviation market. Any potential loss of jobs is regrettable, all the more so in the current international economic climate.

It is very much in Ireland's interest that Aer Lingus maintains its role as a major provider of air services to and from Ireland. The Minister, Deputy Noel Dempsey, is keenly aware of the human considerations at issue. The industrial relations machinery of the State is available to provide any necessary assistance in resolving challenges faced by management and employees of the company. It is encouraging to note that SIPTU has agreed to enter into a process with the Labour Relations Commission and, in the light of the wider global economic circumstances, the Minister urges all sides to take a sensible approach in dealing with the cost saving proposals.

The State has given a mandate to its three representatives on the board relating to wider government, aviation or regional development policies but this mandate is subject to the overriding obligations of directors pursuant to company law to uphold their fiduciary duties and protect the interests of all shareholders. From an Irish economy perspective, the overarching priority for aviation is that Ireland maintains the highest possible level of connectivity between Ireland and key business and tourism markets. This is all the more important in times of global economic turbulence. The problems facing the international aviation industry are well known and we have seen recent business failures of established airlines such as XL and Zoom, while some well known flag carrier European airlines are experiencing severe difficulty.

The Minister is aware that the Shannon Airport Authority has been having discussions with Aer Lingus to identify costs savings with a view to bolstering the prospects of future development of its transatlantic services. However, in framing any proposals to support Aer Lingus transatlantic services, the airport authority must ensure such assistance is provided on a commercial basis and also made available to other airlines.

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