Timmy Dooley (Clare, Fianna Fail) | Oireachtas source

I am aware of the Government's position in the last number of days. Nevertheless, I am somewhat troubled that it took six months to come to the conclusion that it would be the wrong decision for the State to dispose of its shareholding in Aer Lingus to Ryanair. I am concerned that this came on the back of an announcement or rather what appears to be leaked information provided to the Commission by Ryanair. This indicated how the airline could get around the anti-competitive nature of an amalgamation of the two airlines and outlined a notion of selling the Heathrow slots to British Airways. Quite correctly, that struck fear into the minds in the Government and force action on the issue. I am disappointed that it took so long for the Government to recognise the very real challenge that the amalgamation of the two airlines would pose to competition, air fare competitiveness and both business and tourism interests.

Is the Government confident this move will stop Ryanair acquiring Aer Lingus and has the Government had any indication from the European Commission about the likely outcomes? Will the Government stance carry much weight with the Commission? What is the reason for the delay in the decision? I do not understand why it took so long, and it gave some level of confidence to Ryanair that the Government was at least considering the matter. That was unhelpful.

I am somewhat troubled by the notion that the Government is still pursuing through NewERA the disposal of the shareholding. This is not about partisan politics. Ryanair is a very effective company, and although a trade sale to Etihad Airways or British Airways may seem helpful, it is certainly not beyond the capabilities of Ryanair to acquire the shareholding at a later stage. One could not be confident in just doing a trade sale to Etihad Airways or another international player as that will not ring-fence the very important competition which exists between Aer Lingus and Ryanair. I do not believe that will put the Heathrow slots beyond the attraction of other airlines.

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