Martin Heydon (Kildare South, Fine Gael) | Oireachtas source

I am happy to have the opportunity to speak on this very important topic for the country. It is worth restating that the State only owns 25% of Aer Lingus. This leaves us with a minority shareholding with little control over the activities of the company. The 25% shareholding is the only thing we are selling. To put that 25% shareholding in context, much of the debate has been about the Heathrow slots. Our 25% shareholding alone does not control those slots. We would need to persuade another 5% of the ownership to support us in any attempt to protect the Heathrow slots. We are not making a decision on the entire airline. That decision was made by Fianna Fáil when it sold 75% in 2006 and privatised Aer Lingus.

It is also accepted by most commentators that the existing ownership structures of Aer Lingus are not sustainable or practical in the long term so changes are inevitable. Ryanair must sell 25 % of its 30% stake due to a recent court ruling. Etihad has signalled its intention to sell its 5% stake. This shows that the ownership structure was going to change anyway. It is much better that this be done on our terms where we can leverage the best possible deal rather than a potential hostile takeover occurring or a deal being done at a time when the aviation industry is in a worse position and Aer Lingus might not be in as strong a position as it is at present. I am cognisant of the fact that the aviation sector is very cyclical. Given these circumstances, the Minister and the Government sought to achieve the best deal they could in agreeing to sell a 25% minority stake in an international airline. I believe they have done a good job and I commend the Minister for his work since the initial bid came in.

Aer Lingus management and staff have done a great job in recent years in turning the company around and making it successful. This has made it an attractive investment proposition for an international group like IAG. The aviation industry is notoriously volatile, cyclical and ever-evolving and this opportunity may not be available to the company in the future. All it takes is another ash cloud, oil price fluctuation or terrorist threat to turn the cycle. The progress that has been made from the initial bid should be noted when we look at the benefits of the deal. It includes real guarantees and will bring huge benefits to Ireland in terms of jobs and connectivity. There is potential for growth and development at Dublin, Cork and Shannon. The deal will see new routes added which benefit all citizens and regions.

Stephen Kavanagh has confirmed that Aer Lingus with IAG want to grow direct employment. A total of 150 net new jobs will be created by 2016 and 635 jobs will be created by 2020. IAG also expects that new indirect jobs are likely to be created in the airport and airline support activities as well in the tourism sector. Aer Lingus staff are synonymous with the company and its exemplary image. Anybody who has been aware for a while knows that it is lovely to get on that Aer Lingus flight on the way back home and see the friendly smile and familiar accent. Therefore, I am particularly pleased that IAG has confirmed that the existing employment rights of Aer Lingus employees will be safeguarded fully and that there will be no compulsory redundancies.

The Government has secured a number of legally binding connectivity commitments in the offer. The commitment that the Heathrow slots will continue to be held by Aer Lingus indefinitely and the commitment to retain current schedule frequencies between Heathrow and Dublin, Cork and Shannon for seven years post-acquisition is very positive. It will allow the airports the certainty to build on them. Those commitments do not exist at the moment so we have seven years during which commitments that do not exist at the moment will apply.

We must look at the possibilities and not just the negative elements. We could see a situation with investment and development, Dublin could become a hub in itself. We spend all the time talking about the slots at Heathrow and how Heathrow is such a key hub but we have pre-clearance in Dublin and Shannon for access to the US. This leaves us in a very strong position to grow our transatlantic trade. I do not see why Dublin Airport and even our regional airports cannot look to be hubs themselves, rival Heathrow in some ways and grow our tourism and business interests.

Other commitments that have been secured also improve on our current situation. Securing the Aer Lingus name and head office in Ireland is very important. The creation of the new "B" share will give control over these commitments and subject to the approval of Aer Lingus shareholders, they will be enshrined in the articles of association of the company. IAG believes that together with Aer Lingus, it could deliver 2.4 million more passengers, four additional destinations in North America and eight additional aircraft for its fleet. These new transatlantic services could be added by summer 2016. This will have a really direct impact on the country.

Ultimately, many of the speeches in this House referred to an Aer Lingus that no longer exists, an Aer Lingus that was in full State ownership. This is no longer the case. I have heard speeches that praised Ryanair and Michael O'Leary for what he has done. I would ask those who are opposed to this deal whether they believe the growth of Ryanair and the activities of Michael O'Leary would have been possible under State ownership or with State intervention - something that possibly stifled Aer Lingus in the past. Considering all the factors before us, including the potential for growth that the current ownership structure does not provide, this deal is in the best interests of the country and I commend the Minister for his work on it to date.

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