Dara Calleary (Mayo, Fianna Fail)

This matter has been referred to the Department of Enterprise, Trade and Employment as it relates to jobs. I wish first to brief the House of the overall situation in regard to the aviation industry before dealing with the issues in regard to Aer Lingus.

The Deputy will be aware that the Tánaiste, on behalf of the Government, has taken a proactive role during this year to maximise and retain our skills base in the aviation sector following the decision by SR Technics to cease operations at Dublin Airport. Following that decision, the Government's priority was to take all possible steps to maximise the potential of the skills base and infrastructure at Dublin Airport and to retain as many jobs as possible in the sector.

The Tánaiste, therefore, immediately tasked IDA Ireland and Enterprise Ireland to work with SR Technics and other interested parties to find the best possible outcome for Dublin. The two State agencies then engaged additional aviation sector expertise and set about establishing a team to market the Dublin operation internationally through their overseas office network. They received a total of 16 expressions of interest in the facility, each of which were contacted to evaluate their level of interest in the operation and to encourage and, where possible, assist them in putting forward investment proposals to take over all or part of the operation.

In addition, SR Technics received more than 30 direct expressions of interest in the operation, subsequently receiving five bids from interested parties for parts of the business. I understand that following this process SR Technics subsequently negotiated and reached a provisional agreement with a bidder for the sale of the APU and landing gear assets. However, it transpired that the bidder planned to remove the assets from the country, which would have had a terminal effect on the continuation of a maintenance, repair and overhaul, MRO, business in Dublin. Following direct intervention by the Tánaiste, a reversal of that decision by SR Technics was secured and a subsequent bid from Dublin Aerospace Limited, an Irish based company, for the APU and Landing Gear assets was accepted. The Government, through Enterprise Ireland, assisted that bid.

On 2 September, the Tánaiste formally announced the establishment of Dublin Aerospace Limited as a new aviation maintenance provider at Dublin Airport. The company plans to provide 226 jobs within five years with the support of the Government through Enterprise Ireland. Dublin Aerospace Limited aims to establish a best-in-class MRO facility at Dublin Airport, servicing APUs, landing gear, base maintenance and training.

I should also point out to the House that the garage business unit of SR Technics has been successfully taken over by the M50 Truck and Van Centre, who secured the Airside vehicle maintenance contract from SR Technics. In addition, I understand that SR Technics is to continue to operate the line maintenance contract for Aer Lingus until such time as a suitable alternative operator is identified and agreed as acceptable by both companies.

I want now to refer directly to the issues raised by Deputy Broughan in regard to Aer Lingus. In terms of the ongoing restructuring of Aer Lingus, it is clear that the company intends to make a significant number of redundancies across its operation. My Department has to date been notified of redundancies of 676 employees, including ground services, cabin crew and pilots. These redundancy levels are on the basis of agreement being reached on the company's proposed restructured business model. I understand that portions of these are also to be achieved through the outsourcing of various activities at the airline. This is, as pointed out by Deputy Broughan, understandably a difficult time for the employees of Aer Lingus to be affected and I understand that engagement between management and the unions is ongoing.

A sustainable Aer Lingus operation based in Ireland and competing with other airlines for business to and from Ireland is in the best interests of Irish passengers, the Irish economy and airline employees in the long term. I draw the Deputy's attention to the statement made during the week by the National Implementation Board and to my response to a parliamentary question on legislation to protect employees which was tabled by another Deputy. I assure the Deputy that the Government remains fully committed to the aviation sector and to supporting a vibrant air passenger operations based in Ireland.

See this speech in context