Dáil debates

Wednesday, 27 May 2015

Aer Lingus Share Disposal: Motion (Resumed)

 

5:05 pm

Photo of Joe CareyJoe Carey (Clare, Fine Gael) | Oireachtas source

I welcome the opportunity to contribute to this important debate.

I commend the Minister for Transport, Tourism and Sport and the steering group for the work they have done on this issue for several months. For seven decades Aer Lingus has made a huge contribution to the well-being of the State. I pay tribute to the management and staff of the company during those years. The proposed deal with IAG will allow Aer Lingus to open a new chapter of growth and development in the next seven decades. As an island nation, air access is critical in providing connections to international markets for business and tourism. The routes served by Aer Lingus are particularly important to the mid-west region. The access to Heathrow Airport provided through Shannon Airport is a key component of our attractiveness as a region. The mid-west suffered immensely as a result of the decision by Aer Lingus in 2007 to move the Heathrow Airports slots from Shannon Airport to Belfast airport. Our loss of connectivity triggered a spiral of decline as companies incurred additional costs in travelling through Cork Airport or Dublin Airport to reach the global hub of Heathrow Airport. Investment decisions by companies were put on hold and, in many cases, shelved for good. The long-term commitment to connectivity provided in this deal will give certainty to the business community and potential investors and will remove the uncertainty since the decision was made over an August bank holiday weekend in 2007 to take the slots from Shannon Airport. Much of the debate that took place in the lead-up to the decision was based on the incorrect assumption that the Government's 25% shareholding gave it control over the airline. Our experience of the overnight removal of these invaluable slots is living proof that the Government does not have a controlling share. The deal will provide a seven year guarantee on the continued use of the Shannon Airport-Heathrow Airport slots and a veto on their sale. I welcome the commitment to maintain and strengthen the Shannon-New York and Shannon-Boston routes, with the option of enhancing the existing British Airways twice daily service via Shannon Airport. There will also be growth opportunities with IAG's US partner, American Airlines.

In the context of Shannon Airport, I am encouraged by the supportive reaction of groups and organisations such as IBEC, Chambers of Commerce Ireland, tourism interests, aviation experts and Shannon Group. I have every confidence in Shannon Group and its chairperson, board and CEO, all of whom have welcomed the deal. Fianna Fáil and Sinn Féin were badly mistaken when they voted against the establishment of Shannon Airport as an independent entity. Their scaremongering about jobs being lost and terms and conditions of employment changing has not come to pass. Shannon Airport has, in fact, returned a profit since the Government decided to establish it as an independent group. In a similar manner, this landmark deal is being opposed by people such as Deputy Micheál Martin who has stated he has an issue with Shannon Airport growing by 17% in 2014.

This is a good deal for Ireland which will boost connectivity, employment and growth, while also underpinning the future of Aer Lingus. It offers the airline an opportunity to develop and expand its operations to a different level. The major issue of international connectivity has been addressed, the brand will be maintained and new routes will be developed. I support the deal and thank the Minister for his efforts in securing it in the best interests of the country.

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