Diarmuid Wilson (Fianna Fail)

I join with other speakers in welcoming the Minister of State to the House. We are all aware that Aer Lingus was established in 1936 and has since undergone major change, from the establishment of transatlantic services and internal flights to its recent dramatic turn around in the face of major difficulty.

As has been mentioned by other Senators, the terrorist attacks on New York and Washington DC in September 2001 were a major challenge to airlines all over the world. The airline industry went into a serious recession and Aer Lingus, like others, was badly affected in the weeks and months after the attacks — perhaps more so than bigger airlines around the world because of its size.

Under the stewardship of Mr. Willie Walsh, Aer Lingus embarked on a radical restructuring of the company and the board, management and staff at the airline need to be complimented by us all on the manner in which they have turned around the problems at a time when some of the so-called experts were telling them to walk away and close up shop.

Aer Lingus is now expanding its routes across Europe and has returned healthy profits for the past number of years. The Minister of State stated that from being on the brink of bankruptcy in late 2001, when the company registered a loss of €52.1 million, it had an operating profit of €63.8 million in 2002 and is about to publish a profit of €78.5 million for 2003. That is against the background of the war on Iraq and the SARS scare. It is, therefore, good news.

I also note from the Minister of State's speech that the airline operates 42 routes, which is the same as it had originally. Moreover, a further nine routes will be established this year, which must be welcomed by us all. The Aer Lingus Bill is another phase of the survival plan to save our national airline and it is a concrete acknowledgement of the contribution of the staff at the airline to its turn around following the events of 11 September 2001 and other crises.

As the House is aware, I am from Cavan. We do not have an airport but, thanks to the massive investment by the Department of Transport in the roads infrastructure, particularly the proposed dual carriageway from Clonee to Virginia, we will be just a little more than an hour's drive from Dublin Airport. Any of us who have had occasion to travel with Aer Lingus, particularly on transatlantic flights, are justly proud of that company. My colleague, Senator Dooley, alluded to the no frills airline which I will not mention here. It is worth paying an extra few euros to receive the quality of service Aer Lingus provides on its flights, especially its transatlantic flights, of which I have most knowledge. That quality should be maintained as it is to the benefit of the company, even if its services are slightly more expensive than some of the other larger airlines.

Senator Dooley has a fear that Aer Lingus may be bought by some of the larger airlines if it is floated. I think his fear that four or five of the big airline companies could act as a cartel is justified and it is conceivable that we in Ireland could end up with no direct access to North America. We might have to go via London or Paris and I think that would be a sad day, especially since 2,000 people have sacrificed their jobs to enable Aer Lingus to become competitive. I was glad to hear the Minister say that before any proposals to float the company are mooted, he will come before both Houses and outline his plans. It is important that that happens.

Senator Browne's fears for the company if it is floated are perhaps justified, although I would welcome a flotation if the proper safeguards are put in place. Our experience of the Eircom flotation is not a good one. First, as Senator Ross pointed out, consultants were overpaid for the work carried out. Second, having read the various commentators, I believe that the price was too high and a third of the value was wiped off within six months. This will naturally strike fear in the mind of the ordinary citizen. Some of the big institutions might move in and buy it out. However, if the ordinary citizen is given the opportunity to participate in a shares buy-out then it should be realistically priced and as little money as possible should be spent on advisers and consultants. I welcome the Bill. It is a short but effective piece of legislation and I look forward to listening to the other contributors.

I congratulate the Minister of State on his nomination as a candidate in the new North-West constituency for the Fianna Fáil Party. I know he will do us proud although, unfortunately, we will lose him as a junior Minister.