John Moloney (Laois-Offaly, Fianna Fail)

Subject to that duty the Minister has mandated the State-nominated directors to seek to ensure that all decisions of the company that have significant implications for wider Government, aviation or regional development policies are considered at board level. In any such decisions they are directed to seek to reconcile commercial and public policy objectives. The Government is satisfied from all the information available to it that a major restructuring of the group's cost base is essential if Aer Lingus is to survive.

The Minister understands that approximately 100 of the 676 job losses being sought by the company will be at its Shannon Airport base. Job losses are particularly regrettable in the current economic climate and the Minister and I have every sympathy for those whose jobs are on the line. The Minister understands a consultation process between management and staff is now under way and he encourages all parties to engage constructively in that process. The industrial relations mechanisms of the State are available to assist in reaching an agreed outcome for all concerned.

From an aviation policy perspective, the cornerstones of Government aviation policy are competitiveness and connectivity. A viable Aer Lingus is key to ensuring the achievement of these objectives. In Ireland, our priority now is to ensure we can sustain continued air access to key business and tourism markets. Competition among airlines serving the Irish market has been the cornerstone of our aviation policy resulting in dramatic growth in air services and passenger numbers over the past ten to 15 years until the advent of the global downturn. The best way to maximise Ireland's air connectivity is to see Aer Lingus returned to a stable footing to allow it to compete aggressively in the current very difficult market environment. This is a difficult time for Aer Lingus. I ask all stakeholders and regional interests to lend their support to the airline to ensure it has a viable independent future for the benefit of tourism, business and the country's economic recovery.

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