Leo Varadkar (Dublin West, Fine Gael)

On the first point, I have had discussions with the chief executive officers of Aer Lingus, CityJet, Ryanair and Aer Arann, as well as the chairpersons of three of those airlines. I have been in correspondence with the international airlines. Engagement with the latter is important because just as Irish people tend to fly with Irish airlines, even in these modern times, so too do people from Germany, France or wherever tend to fly with their own airlines. Non-national airlines, therefore, are particularly important in terms of attracting inbound tourists.

In coming up with the incentive scheme the DAA looked at the issues as to its own financial position, as did the board, before it was signed off. My guidance comes from the DAA in that regard and if it is satisfied the scheme will not damage its financial position then I too am satisfied. There is no point in having an incentive scheme which damages the DAA itself and the future of the airports it manages. It is a case of finding a balance.

It is always a challenge with issues like these where, for example, a company which is in trouble or is losing business may succumb to the initial temptation to increase prices and charges in a bid to attract more revenue. The risk in that strategy, however, is that one may lose customers. That is the decision-making process we have to go through. The DAA did that work itself before its board signed off on the growth scheme. On that basis I am satisfied there are no concerns about the authority's financial position arising from this scheme. Moreover, there must be growth before the incentive even comes into play. If there is no increase in passenger numbers, passenger revenues and commercial revenues then the scheme will not come into effect.

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