Tom Fleming (Kerry South, Independent) | Oireachtas source

I have grave reservations about how the proposed takeover of Aer Lingus by IAG will look in future. In trying to analyse the consequences for our national and regional airports, we cannot ignore the approach taken by British Airways to its domestic market and what has occurred there in recent years. British Airways has consolidated its transatlantic services into the London airports, especially Heathrow. It has achieved this by feeding all its UK regional passengers through Heathrow, rather than by providing transatlantic services from other large English city airports.

British Airways is ceding this significant transatlantic business to its competitors in favour of a consolidated London-centred approach. In the event of an IAG takeover of Aer Lingus, there is a real possibility that in the short to medium term, IAG will consolidate all Aer Lingus' transatlantic traffic into Dublin with its US customs and border pre-clearance facility or CBP. This scenario will have a detrimental effect on Shannon airport's interests in particular. It will also have a capacity to undermine the viability of the CBP facility.

Even in the event of a full withdrawal of the Aer Lingus transatlantic services over time, Shannon would rely on a number of US carriers continuing to service the airport. It is clear, however, that without a sufficient volume and the critical mass of Aer Lingus' transatlantic services, the viability of a CBP facility would be at significant risk. The US authorities will not provide this facility purely on a seasonal basis. It is clear also that any Irish airport with CBP facilities would have no year-round scheduled transatlantic services. This imminent possibility would clearly work in the interests of Dublin airport at the expense of the State's other airports.

In the event of a successful IAG takeover of Aer Lingus, Shannon will be more vulnerable to cuts with possibly the total loss of its Heathrow slots over time. This was proven previously by Aer Lingus. Its complete transatlantic service would also be vulnerable as a consequence of the proposed merger of the three State airports at Shannon, Cork and Dublin. Shannon is most at risk and is vulnerable to sustaining the greatest loss through this deal. Cork airport with a large catchment population has a number of things in its favour. In all likelihood, Cork would maintain some of its Heathrow connections, as well as enhancing short-haul services.

The ironic aspect of this proposed takeover is that Aer Lingus has had a major revival in trade over the past five years. This occurred at a time of recession not only in Europe but also worldwide. The airline is competitive, viable and one of the fastest growing carriers in Europe.

Aer Lingus management has demonstrated that it can operate successfully as a viable and profit-making independent carrier. This follows 80 years of very successful business and its potential in the current global market is spiralling upwards. It would be most unfortunate to see one of our national treasures and State assets being totally sucked into the ownership of a foreign multinational.

Some of the negotiating tactics, ploys and offers look great but the bottom line is there are no job guarantees. There is also an absence of guarantees about the Heathrow slots beyond the seven-year window, which is one of the conditions. Paramount in all of this are the Aer Lingus legacy slots. They are crucial and very valuable to our tourism industry in particular, as well as our export sector and the maintaining and further development of foreign direct investment into this country. It is imperative that any condition of sale would secure those slots for a minimum of 20, 25 or 30 years. That is a vital aspect of any sale.

Due to economic and regional strategic development of our major indigenous industries, such as agriculture and tourism, which are rapid growth areas, there is a surge in technological companies investing in this country. Now, more than ever, we need to be in charge of our destiny. The enhancement of connectivity by aviation transport is crucial in this respect. As an island nation, our airport access and connectivity is a vital component in the revival and restoration of jobs. We do not want a repeat of what happened to Scotland, for example, as a result of IAG's actions. It has no transatlantic route, and the neglect of Scotland by British Airways has resulted in a complete absence of any route into the North American market from any Scottish airport. Aer Lingus has developed nine transatlantic routes that are flourishing, fortunately.

It is a matter of neglect that we have no aviation policy, and although there have been efforts made since early last year, they have not yet progressed. I ask the Minister to resume and renew the process. We will be at a major disadvantage in global aviation terms unless we put in a place a good working policy with rational thinking. Practically all countries at this stage are working from a strategic perspective. That approach is neglected in our case so I ask that the issue be addressed as a matter of urgency.

I mentioned earlier about feeding into our State airports. I mentioned Cork, Shannon and Dublin but we cannot forget Knock as a regional strategic airport as well. We have peripheral airports, such as that in Kerry, and the Minister knows its importance. There are also airports in Donegal and Waterford, and it is imperative that we do not neglect those resources and assets. They are crucial. The Aer Lingus regional service in its current format, with Stobart Air, has looked after the regions. In Kerry, for example, it got the public service obligation contract and I thank the Minister for his co-operation in that matter.

I would be very fearful of what will happen down the road with these crucial strategic airports. We know the road network comes in at Macroom at Cork and Adare in Limerick but we are totally hindered in our development of the tourism industry because of what is happening on that side. I ask the Minister to take up these matters in the near future as they are relevant to his portfolio.

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