Seanad debates
Wednesday, 13 November 2002
Tourism Industry: Statements (Resumed).
I will try to tie in a point Senator Terry made regarding the contribution of my colleague, Senator Daly. Competition is important in all sectors but in the airline sector there is a level of undercutting on some routes. My concern would be that if there was a price war over a prolonged period of time, one or other of the competitors would no longer service particular routes and these would become unviable. This is the point Senator Terry is probably missing. When you get to a point where it is not viable for one competitor, that company pulls out of the market. She has identified Michael O'Leary as a good businessman, and no doubt he is, but when somebody pulls out of the market you leave it open to the vagaries of the one or two who are left. That is where there is no longer competition and where it has an effect on the potential future of reasonably priced air fares. At times we have seen air fares reach a point where it is almost ludicrous. In some cases the tax is greater than the cost of the flight. That is not a real position and we must be very careful about that.
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