Tommy Broughan (Dublin North East, Labour)
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Question 24: To ask the Minister for Transport if his attention has been drawn to the impact of reductions in passenger volumes on airline carriers and new aviation infrastructure including Dublin Airport's new terminal two; and if he will make a statement on the matter. [46096/09]

Noel Dempsey (Meath West, Fianna Fail)
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The aviation sector has been cyclical in nature and in the past decade or so, has been significantly adversely affected by events such as the September 2001 terrorist attacks, the SARS outbreak in 2003 and the record peak in oil prices in 2008. The current global recession is the latest crisis to hit the sector which historically, has had low profitability and is also known to be structurally weak due to general over-capacity.

This year is proving to be an exceptionally difficult year for the industry. The International Air Transport Association's, IATA, latest forecast is that the global air transport industry will suffer losses of $11 billion in 2009. It has revised this estimate upwards twice since the start of the year as the effect of the recession on air travel has been more severe than initially envisaged.

Many airlines are currently undertaking radical restructuring or, in some cases, going out of business and some Irish carriers are also experiencing significant difficulties, particularly those whose cost bases are out of line with their competitors. Airports are also being deeply affected as airlines are cutting back on capacity and routes in response to falling demand for air travel. The impact is being experienced across the world and is not unique to Irish airports.

The continued roll-out of the Dublin Airport Authority's investment programme, including the completion of terminal two which is designed to strengthen airport capacity for the long term, and the introduction of US preclearance facilities, will provide airlines with opportunities to develop and grow new services and attract new carriers to Dublin when trading conditions improve.

Tommy Broughan (Dublin North East, Labour)
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My question to the Minister was to do with events in Aer Lingus, the joint largest domestic Irish aviation employer but the reply does not reflect my question at which I strongly protest.

Has the Minister received a copy of the Project Greenfield plan for Aer Lingus from his three nominee directors on the board? We are facing the loss of between 676 and 1,000 jobs, according to the new chief executive, Christoph Mueller. Is the Minister aware of the major plan to outsource pilots and cabin crew outside the Republic which is being undertaken by Aer Lingus and aeroplanes have left Belfast in Aer Lingus colours without a single Irish crew member aboard because of a deal with Astraeus? Does the Minister agree with the Aer Lingus proposal to register on the United Kingdom civil aviation register and effectively become a British company and off-source its pilots and cabin crew as private subcontractors based, if the company follows the Ryanair model, in Gibraltar on terms and conditions that are at variance with our Revenue and social welfare rules? This is my third attempt to ask the Minister-----

Brendan Howlin (Wexford, Labour)
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Before allowing the Deputy to continue, as he will be aware, under Standing Orders the Minister answers only in his area of responsibility. The Tánaiste and Minister for Enterprise, Trade and Employment is responsible for industrial relations matters. I understand the Deputy raised this issue on the Adjournment last week. While I wish to be as flexible as possible, the Minister is not accountable for the industrial relations aspects of the original question which, unfortunately, was not in order.

Tommy Broughan (Dublin North East, Labour)
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He is the Minister with responsibility for transport. This is one of the problems with the rules of the House.

What are the implications for connectivity if Aer Lingus follows Ryanair in a race to the bottom and becomes a pale copy of its competitor? As Christoph Mueller stated in today's edition of the Financial Times, the company will have to link up and become part of a broader company. Is it not a bad outcome that we seem destined to lose many jobs in Shannon, Cork and Dublin? Will this not have a negative effect on connectivity?

Noel Dempsey (Meath West, Fianna Fail)
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Any loss of employment is bad for the country and the individuals affected. Anything that can be done to avoid job losses should be done. However, it would be an even worse outcome if we were to end up with one airline operating in and out of Ireland. Competition and connectivity are cornerstones of aviation policy. The former must be supplied by at least two airlines. If one airline costs itself out of the market, we will only have one airline, which would be a bad day for the country.

Despite the current difficulties and the potential loss of 676 jobs at Aer Lingus or 1,000 jobs if pilots do not agree to the package put forward by the company, if Aer Lingus does not secure the savings it requires, we will end up with only one airline operating in and out of this country. I do not want to contemplate such an outcome nor, I am sure, does the Deputy. I accept this is a difficult matter which has employment implications. Notwithstanding this, costs must be brought into line. Aer Lingus operates on a commercial basis and must compete. If it fails to do so, one cornerstone of our aviation policy, namely, competition, will be removed.

Tommy Broughan (Dublin North East, Labour)
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While I do not wish to pre-judge the debate on budget 2010, has the Minister received a copy of the cost benefit analysis of €10 travel tax prepared by Amsterdam Aviation Economics on behalf of the three major airlines operating here, namely, Aer Lingus, Ryanair and CityJet? Irrespective of whether the travel tax is abolished this afternoon, as I hope it will be, will the Minister provide the Opposition with a copy of the analysis?

Noel Dempsey (Meath West, Fianna Fail)
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I did not do the cost benefit analysis; it was done by the airlines. Obviously, they are trying their best to have the €10 airport departure tax removed. If the tax is causing such grief, perhaps they will examine some of their own charges, for instance, the on-line check in charge of €10 for each leg of a journey, the €5 administration fee for credit cards, priority boarding fees of €5, the €40 charge for reissuing airport boarding cards, infant fees of €20 and checked baggage fees. In light of this incomplete list of airline charges, anyone who seriously expects me to state that the airport departure taxes are the cause of the decline in passenger numbers, he or she is living in cloud cuckoo land.

Tommy Broughan (Dublin North East, Labour)
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Fares are still cheaper than they were in the past. The Minister needs to learn a little about economics.