Derek McDowell (Labour)

We all agree there is a need for a decision. It is now five years since the Leader announced there would be an IPO of Aer Lingus, we have gone through a number of contortions since and we still do not have a final decision from the Government. All of us agree that the delay is damaging the company's market value and the morale of staff and management, who do not know where they or the company will be in a few years time.

Senator Morrissey said that he and his party do not take an ideological approach, although it sounded ideological to me. I am not nervous about being described as having ideological views; I believe it is the role of the State to safeguard certain strategic interests of the State and its people. It is important that we define those strategic interests. I agree with the items mentioned by the Minister when he said that we have to look at connectivity, that we need as many direct flights to as many destinations as possible and serving as many destinations in Ireland as possible, something that is hugely important for business and tourism. We all agree on that. It is also important that we safeguard the Heathrow slots, although I agree with Senator Morrissey that it is less important than it once was.

I do not know why the management team left. We can guess that a Government decision and the botched effort at the MBO had something to do with it. It is important that we get over this and put a new management team in place but we cannot do that until there is certainty about the future. The Goldman Sachs report clearly linked two issues — future capital requirements and ownership. That is fair. It is not so persuasive in suggesting that we need additional equity, that it should come from a private investor or that strategic interests can necessarily be guaranteed by retaining 25% or 25% plus one share of the company.

The past two years were interesting. Previously, I was happy to allow the management of Aer Lingus to make commercial decisions based on the need to maintain connectivity. I was concerned, however, at the dumbing down of the company. Do we want Aer Lingus to be dumbed down? I am not sure we do. The brand commands a loyalty that is extremely unusual in this country, over and above any other State owned enterprise or private company. It evokes a certain pride and loyalty among Irish people that should not be easily discarded because it is of significant commercial value. That loyalty is likely to be diminished if Aer Lingus becomes another Ryanair. The reaction to the decision not to repatriate human remains a few months ago demonstrated it. People felt that it was an insensitive decision and that our national airline should do that sort of job. They also want courier, postal and cargo services to be maintained. There are some who feel there is a need to maintain business services too. Even issues such as the uniform have somehow taken on an almost symbolic importance which should not be disregarded.

We have come to a stage where the low fare airlines, particularly Ryanair, co-exist with Aer Lingus, which is a lesser-frills airline. They do not compete to any great extent except to a few British airports, Paris and Brussels. They have developed niches in the market that satisfy most customers. The new management, however, has driven Aer Lingus into the same market as Ryanair, the low fares market, based on the assumption that customers are only interested in fares and getting from A to B as quickly as possible. That is not entirely the case. There are some customers who like frills such as designated seats and knowing their bags will get from A to B to C without having to pick them up themselves.