Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

Furthermore, in the new proposal commitments that are being given for at least seven years post-acquisition, all Aer Lingus's current winter and summer daily scheduled frequencies on routes between Heathrow and each of Dublin, Cork and Shannon will be maintained. In addition, all of Aer Lingus's other London Heathrow slots will be operated on routes to and from Ireland in the first five years. These are guarantees we do not have at present.

I should also mention that under the proposal, the Aer Lingus group will not change its name and Aer Lingus will operate all its scheduled international air transport services under the Aer Lingus name. Aer Lingus will also maintain its head office in Ireland. Again, these improve the protections currently in place.

I would like to draw to the attention of the Dáil that, in addition to these commitments, IAG has confirmed, as outlined in the formal announcement, that for the 2016 summer season two new transatlantic destinations can be added and that by 2020 four transatlantic routes will be in place, delivering up to 2.4 million additional passengers. This will enable Ireland to become an important hub for European traffic across the Atlantic. As part of the north Atlantic Joint Business with American Airlines, Iberia, British Airways and Finnair, Aer Lingus will benefit directly from the sales and marketing of the bigger group, in particular in the United States. In addition, Aer Lingus's planned long haul growth would benefit from being part of lAG's global cargo network and customer loyalty unit, Avios.

Turning to the benefits of the deal for other airports, IAG plans to sustain and grow business at Cork, Shannon and Ireland West Airport Knock and have, in particular, referenced the Cork-Amsterdam and Cork-Paris routes, the transatlantic routes from Shannon and the Knock-London route. For example, IAG has a strong presence in Paris with 56 daily flights, 45,000 active frequent flyer members and a strong sales force. I am assured that growth opportunities with tourism and business interests in the Munster region will be pursued to exploit the potential that exists in all the short haul routes currently operated by Aer Lingus from Cork. Aer Lingus has indicated that a combination with IAG would also underpin a new Cork-Germany service, which will be announced shortly.

In Shannon, in the context of sustaining and growing its business, IAG will consider options, including Aer Lingus codeshare and accepting customers originating from Shannon, that could enhance existing all-business British Airways two daily services from Heathrow to JFK via Shannon. The Aer Lingus Shannon flights to Boston and New York are expected to be strengthened as a result of the company becoming part of the North Atlantic Joint Business. Aer Lingus support for existing American Airlines flights to Philadelphia will provide opportunities for additional capacity and increased connectivity to the US. In addition to the Gatwick route becoming more sustainable, Aer Lingus will also actively work with Knock airport to explore new growth opportunities that will be available as part of the IAG group.

I want to assure the House that IAG has confirmed that existing employment rights of the employees of Aer Lingus will be fully safeguarded upon completion of the offer. It has also confirmed that it endorses Aer Lingus statements that it will honour its collective agreements and is prepared to confirm that it will re-register existing registered employment agreements, REAs, under the new legislative framework when it is introduced. The chief executive of Aer Lingus confirmed Aer Lingus's position on REAs in a letter to me yesterday, indicating that Aer Lingus considers that having clear registered employment agreements that safeguard the respective interests of employees and the company is mutually beneficial. In addition, Aer Lingus has committed to expanding the scope of REAs, where appropriate, to include staff groups not covered by the current agreements. The letter also indicates that Aer Lingus will engage in a process of consultation governed by agreed structures with staff and its representatives when any restructuring is required and that it does not foresee a likelihood of either compulsory redundancy or non-direct employment.

This, together with the expected increase in direct employment in Aer Lingus as a result of this deal, is a very compelling proposition and a significant improvement on what is now there. International Airlines Group has also stated clearly that under its ownership there will be significant job opportunities in the Aer Lingus business. In the coming year alone the assessment is that there will be net employment growth of approximately 150 jobs in Aer Lingus. By 2020, growth in Aer Lingus could lead to the creation of up to 635 new highly skilled jobs, including over 400 pilots, as well as engineers and ground staff.

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