Mary Coughlan (Donegal South West, Fianna Fail)

I propose to take all the questions together.

Following the announcement that SRT was to close its aircraft maintenance operation at Dublin Airport, I established a group under the IDA and Enterprise Ireland, with the engagement of an aviation expert, to act as a contact point for any company interested in taking over part of the SRT business, or starting a similar business at the airport. Several expressions of interest were received, one of which led to the establishment of a new company, Dublin Aerospace, which is currently setting up a heavy maintenance operation and which will employ about 200 people at the airport when fully operational.

An approach was also received from Ryanair proposing to establish a heavy maintenance operation for its own fleet which would initially employ about 200, perhaps rising to 500 over a number of years. This was a most welcome proposal but there were two complications. First, representatives of Ryanair insisted that they would not talk to the Dublin Airport Authority and this posed a significant obstacle to concluding the agreements necessary to implement the proposal. Second, their interest focused entirely on a particular existing facility - hanger six - which was not available as it was being used to provide line maintenance for the Aer Lingus fleet at the airport.

Ryanair's approach to the Prestwick project was very different from its approach in Dublin. It negotiated with the authorities in Prestwick which it will not do in Dublin. It is also building a hanger in Prestwick, whereas in Dublin, it is seeking to have a sitting tenant removed from an existing facility to accommodate the company. Nonetheless, I was determined that every effort should be made to secure the project and a protracted engagement and correspondence ensued, involving the IDA - whose officials kept me fully briefed at all times - the DAA and Ryanair. This process culminated in a letter from Mr. Barry O'Leary, CEO of IDA, to Mr. Michael O'Leary, which clearly set out the position and which I would like to read into the record of the House. It states:

Dear Michael,

Further to recent extensive correspondence and discussion between Ryanair and IDA on your proposal to establish aircraft maintenance operations at Dublin Airport, I would like to set out IDA's current understanding of the situation and to outline the options which exist to take the proposal forward.

The options available would enable Ryanair to establish significant aircraft maintenance operations at Dublin Airport. In the course of examining the scope to bring this about, IDA has had extensive discussion with the Tánaiste and Minister for Enterprise, Trade and Employment, with the Minister for Transport, and with the DAA. All of these, as well as IDA, are fully committed to maximising maintenance employment at the airport and I very much hope that we can all succeed in working with you to achieve a positive outcome. To this end, the services of IDA and Enterprise Ireland remain available to assist in every way possible.

Hangar 6 continues to be occupied by maintenance operations carried out on Aer Lingus aircraft. Aer Lingus continues to hold legal rights to have its maintenance carried out in this hangar and has indicated that it wishes to continue to avail of this. However an option exists to replicate these facilities through a new build elsewhere on airport lands. A number of viable sites exist for such development. IDA remains available to facilitate or, if appropriate, to become involved in developing this option. Alternatively, subject to a more detailed understanding of your requirements, there may be an option to accommodate your proposal in space remaining available in hangars 1 to 5.

I suggest that we should now immediately meet with your people to take the matter forward and finalise selection of an option to locate your proposal. IDA remains fully available to liaise with DAA and Ryanair to progress the matter. We are of course anxious to expedite the establishment of further maintenance employment at the Airport and we are committed to apply our experience to bring this about, including through direct involvement in the project if that should prove useful.

DAA are willing to engage constructively with any company to create viable maintenance employment at the airport. Both the Tánaiste and the Minister for Transport have very actively expressed similar sentiments, and both have stressed their availability to continue in any way they can to a successful outcome.

In the circumstances, I think we should all now redouble our efforts on your proposal. We will immediately be in further contact with Michael Hickey to progress matters.

Looking forward to a successful outcome. Yours sincerely , Barry O'Leary.

That letter was sent on 19 of September 2009. Ryanair did not take up the offer of an immediate meeting to explore the available options, but in a reply of 24 September, repeated the demand that the Government require the DAA or Aer Lingus to vacate hanger six.

I assure the House that the Government is entirely serious about this project. Ryanair is imposing significant conditions, one of which, the refusal to talk to the Dublin Airport Authority, is difficult but perhaps not impossible to meet. While I will do everything possible to find a way around this condition, the second condition, that Ryanair must have hangar 6, is much more problematical. Hangar 6 is not available; it is licensed to Aer Lingus. However, Ryanair can do in Dublin exactly what it is doing in Prestwick, namely, build a hangar at the airport to accommodate a maintenance operation.

I strongly encourage Mr. Michael O'Leary to re-engage in discussions on the available options for establishing a Ryanair maintenance operation at Dublin Airport in the context of his meeting with me later this evening. As Mr. O'Leary appears to accept, there is a wealth of skills available to support such an operation at the airport. With common sense and determination, an arrangement can be arrived at which would be in the interests of both the airline and the people of north Dublin.

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