Michael Lowry (Tipperary, Independent) | Oireachtas source

Job losses, cost-cutting, pay freezes, financial losses and crisis are the stark words that have been bouncing off the walls of this House as Minister after Minister has faced questions in recent weeks. The Government response, by and large, has been proactive. I trust the Government will also give practical support to the Irish aviation industry which landed in this crisis with a legacy of unresolved issues and now has little runway to help it rise out of it. The urgency of the current situation is unparalleled in modern times and finding solutions is crucial not only to the industry but to our tourism industry, to keeping our cargo supply chains open, to keeping our airports viable and to sustaining export trade with other countries.

I want to focus on the immediate future of workers in the industry and the situation that is unfolding at Shannon Airport. From the perspective of getting aircraft back in the air, aviation workers at all levels are calling for the 14-day quarantine period to be re-examined. Ireland is the only country, other than the UK, enforcing this strict rule and the latter is currently re-examining it. The science behind this mandatory quarantine in relation to travel should be explored in depth. Does the Minister agree that the 14-day quarantine requirement should be reviewed?

It was revealed last week that Aer Lingus will now move forward unilaterally with the restructuring of the company, which will include lay-offs and reduced terms and conditions for the staff who remain in their jobs. Since the onset of the Covid crisis, Aer Lingus has availed of the wage subsidy scheme and it has also benefited from a lucrative contract with the HSE to carry PPE from China. In addition, the airline reported operating profits of €276 million for 2019 and its parent company, IAG, is currently in talks to acquire airlines in Spain and Austria, while, at the same time, taking advantage of furlough schemes in Ireland, England and Spain. While it is not unreasonable to seek temporary changes within Aer Lingus during this pandemic, the concern is that staff terms and conditions have constantly been under revision. Cost-cutting is nothing new to Aer Lingus staff. This most recent decision, taken without consultation or communication with unions or staff, for non-voluntary redundancy or unilateral redundancy is yet another slap in the face for Aer Lingus employees. Throughout the years, many of these employees have seen and taken drastic cuts, not only in terms of pay freezes, but in alterations to their terms and conditions.

In recent years, however, when the highest profits in the history of Aer Lingus were announced, the pay and conditions were not restored and nor did the staff share in the monetary success, although agreement to do so was set by the Labour Court in October 2017.

The driving force and success of Aer Lingus lie not with its executives but with its unique staff. These staff members, who are scattered across Tipperary and the rest of the country, are currently living their lives under a black cloud of uncertainty. The Government is keeping them in their jobs, for which they are grateful, but their futures are vulnerable and uncertain. This vulnerability will have a ripple effect throughout the entire economy if significant job losses occur. These people are homeowners, supporters of local business and contributors to the local and national economy. We are talking about families - men and women who have built their lives around their jobs, struggled through the bad times with the promise of a brighter future, but who now face the prospect of shattered lives, hopes and aspirations.

Governments across Europe, including France, Spain, Germany, Italy, the Netherlands, Sweden and Norway, as well as American air carriers that compete with Aer Lingus, have provided sizeable financial support to their airlines with the strict condition that jobs are not lost and that there are no changes to the terms and conditions for employees. Why has the Irish Government not followed suit to protect the future of workers in the aviation industry?

While assistance is needed to protect the future of the airlines operating out of Ireland, the airlines should, in turn, play their part in securing the future of the industry as a whole. The new all-party Oireachtas Shannon Airport group has called on Aer Lingus to make a long-term commitment to Shannon Airport to restore confidence in the entire mid-west. This call comes in light of the airline’s decision to temporarily suspend its vital Shannon-Heathrow route and the fact that it is treating Shannon Airport differently from Dublin and Cork airports. My constituency of Tipperary forms part of the mid-west region. This region, along with many counties on the western side of Ireland, is dependent on the ease of connectivity to Britain afforded by the Shannon to Heathrow route. It provides swift entry for business and social purposes and quick access to connecting flights to worldwide destinations not served by Ireland.

The Shannon Group is a driver of economic growth. Independent research has proven that its activities support over 46,000 jobs in the region. Since the establishment of Shannon Group in 2014, it has undertaken a major €115 million investment programme and as a result, the regeneration work it is doing at Shannon free zone is breathing new life into the area, stimulating foreign direct investment and indigenous investment and creating jobs for our young people from around the region.

Prior to Covid-19, passenger traffic at Shannon Airport was set to take off this year. Commitments by Aer Lingus and Ryanair to new routes and increased frequency for existing routes were welcome and promising. Over the course of the last two months, like other airports all over the world, Shannon Airport has witnessed an almost total collapse in its airport traffic and revenues. The success of Shannon Airport and Shannon Group’s activities is critical for the economic well-being of businesses in the mid-west and all along the west coast. The airport is the very lifeblood of the region. The air services provided through Shannon Airport are essential to support Irish and international businesses located here, and its location at the heart of the Wild Atlantic Way makes it an important gateway for international visitors.

There are a number of initiatives that would greatly help Shannon Airport at this time, including funding to assist in securing strategic routes and, importantly in the context of the Covid crisis, restoring current routes. This funding would go to the airlines. Dedicated funding is also required to complete essential capital expenditure projects. These types of projects are currently funded by Shannon Group from its own resources. We also need a waiver from commercial rates for Shannon Airport and Shannon Heritage until some normal level of revenue and activity is restored and the continuation of the wage subsidy scheme for the aviation and tourism sectors severely impacted by the pandemic. Shannon Airport is at a critical juncture. Any new Government needs to secure the future of this vital service hub for the mid-west and we need to pursue the restoration of the Shannon-Heathrow route as a matter of urgency.

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