Dáil debates

Thursday, 28 May 2015

Aer Lingus Share Disposal: Motion (Resumed)

 

2:05 pm

Photo of Kieran O'DonnellKieran O'Donnell (Limerick City, Fine Gael) | Oireachtas source

I am glad to be able to contribute to this debate. I commend the Minister for all the hard work he has done in this area. I will speak as a Deputy who represents Limerick city and the mid-west and in that context, Shannon Airport. Shannon Airport has been a vital driver of economic growth in the region for a long period of time. To put it in context, a person could fly from Shannon to Heathrow with Aer Lingus for the past 50 years.

This new improved offer from IAG brings about certainty for Shannon Airport, the mid-west and Limerick in two main areas. For the first time, we are getting a guarantee that the Heathrow slots and, more particularly, the daily flights from Shannon to Heathrow will be kept and will not be diminished over the next seven years. This is to be welcomed. There is a commitment from IAG in this improved bid that it will look to maintain and grow the transatlantic routes that currently operate out of Shannon, namely, those to Boston and New York. I very much welcome this. In respect of Aer Lingus workers based on Shannon, I recognise that Aer Lingus has stated today that there will be no compulsory redundancies and I welcome this. We should be looking to grow the numbers at Shannon and other airports.

Before I speak specifically about Shannon Airport, I would like to welcome the fact that the Aer Lingus brand is being retained because it is synonymous with Ireland. The airline flies the shamrock which is a hugely important ambassador for the country all over the world.

In terms of the impact of this offer for Shannon Airport, it brings certainty on the Heathrow and transatlantic routes, both of which are extremely important to the airport. Connectivity through Heathrow and the year-round direct connectivity to Boston and New York are hugely important because we have a very large multinational base in the mid-west and along the western seaboard. One of the key reasons for that is the connectivity at Shannon Airport, as various employers have testified, including Regeneron in Limerick. Representatives of that company are on record as saying that one of the key reasons the company located in Limerick was the direct connectivity on the north Atlantic routes. Viagogo, a relatively new company which set up in Castletroy, has stated that it chose Castletroy because of the connectivity to Heathrow at Shannon Airport. When we boil it down to economics, the connectivity in the mid-west through Shannon Airport equals jobs.

One of the key successes of this Government in recent times has been its decision to make Shannon Airport independent. The airport has thrived across a range of areas since gaining independence. In the last year alone we have seen 17% growth in passenger numbers. Anyone who drives by Shannon Airport will be heartened to see that the car parks are full and that the nearby hotels are doing well, which are very positive signs. When IAG first announced its bid, I was eager to ensure that nothing was done that would undermine the success, to date, of Shannon Airport. The Heathrow slots were a key issue and we now have a seven year guarantee in that regard, which I very much welcome. That will encourage businesses to locate in the region and enable those already based there to know that direct connectivity is guaranteed with the flights that are currently in place for the next seven years at least and, no doubt, long beyond that.

Shannon Airport has significant capacity, with one of the longest runways in Europe. It has enormous capacity to grow further and a key element of that is the transatlantic routes. Apart from Aer Lingus there are other airlines operating transatlantic flights into and out of Shannon Airport although Aer Lingus is very much the flag carrier in that regard. We have seen the return of year-round schedules recently which shows how successful the airport has been. Those looking at Shannon Airport from the outside often miss the fact that it is boxing way above its weight. The airport is a key ingredient for economic development and tourism in the region. It brings tourists into the region all year round, but particularly in the summer period. It also brings key business executives to businesses based all along the western seaboard, from Sligo all the way down to Kerry. We are continually talking about balanced regional development and having an international airport functioning along the western seaboard ensures that we have a strong counterpoint to the eastern region and Dublin in particular. I am not taking from the great work that is happening in Dublin but we must have balanced regional development and Shannon Airport is key in that regard.

As with everything, we must look at the positives. In the context of this deal, the positives include the seven year guarantee on the Heathrow slots and the promised growth in transatlantic traffic and I take the word of IAG on the latter. The Shannon Airport Authority has a new board and new management in place who are doing a fantastic job and they are very supportive of this deal. Their track record speaks for itself. As a public representative based in the mid-west, I would like to see the details of IAG's growth targets and plans for the transatlantic routes out of Shannon Airport. I have no doubt that the Minister will be speaking to Willie Walsh at some stage in the near future and I would urge him to pass on the message that he should not be afraid to send passengers into Shannon Airport for onward transatlantic travel. The airport has the capacity, structures and staff in place to deal with additional passengers and it operates very efficiently. Anyone who has used Shannon Airport will testify that it is very easy to get around it and that parking there is relatively easy. The airport now has full pre-clearance for the United States which is hugely significant. IAG is using the pre-clearance facility for British Airways executive flights, which is very welcome.

Shannon Airport is hugely important to the surrounding region. Many of the staff who work at the airport live in Limerick city. The airport is an integral part of the economic fabric of the mid-west. The fact that it has become independent and has been successful is testament to the policy focus of this Government which is based on enabling regions to develop for themselves. The mid-west, western seaboard and Limerick bring an international dimension to economic development. Companies from all over North America are based in the region, as are many European companies which use the Heathrow routes at Shannon Airport. There is also enormous connectivity to the Asian markets in the mid-west region.

I welcome this measure and am fully supportive of it. It brings certainty to Shannon Airport with regard to the Heathrow slots for seven years, as well as assurances with regard to growth in transatlantic routes. I look forward to seeing IAG's plans in that regard; it has made a public commitment to grow transatlantic traffic. I also welcome its strategic alliance with American Airlines. I would like to see the details of the company's plan, including the period of time involved and the number of passengers it hopes to put through Shannon Airport. I am confident that we will continue to see success at Shannon Airport and in the region more generally and that a rising tide will lift all boats. I cannot overstate the importance of Shannon Airport to Limerick and the entire mid-west region. I welcome this measure and look forward to seeing how IAG and Aer Lingus will improve the potential of Shannon Airport.

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