Sean Barrett (Independent) | Oireachtas source

I welcome our good friend, the Minister for Transport, Tourism and Sport. He and I discussed issues of aviation economics many times when he was my student in Trinity College Dublin. My concern in this instance is repeated announcements that the Government is edging closer to accepting the proposed takeover of Aer Lingus. I was pleased to note the Minister's statement during his visit to County Kerry at the weekend that he welcomed Mr. Donald Trump's contribution to the debate on the proposal. The takeover would be in the interests of British Airways and IAG and we know the Aer Lingus board wants it proceed. This does not mean it would be in the interest of wider society.

I am particularly concerned that British Airways has not developed any routes on the north Atlantic from Scotland, a country with a population of 5.3 million people, the north of England, a region with a population of approximately 15 million, and Birmingham, which is located in the UK midlands with a population of approximately 10 million between the east and west Midlands. British Airways could be called "Air Heathrow" given that it continuously channels traffic through Heathrow Airport. In contrast, Aer Lingus has developed nine north Atlantic routes. I am not convinced British Airways will pursue different policies in Ireland from those it pursues in Britain if it takes over Aer Lingus.

A major part of the disquiet in Scotland is that, to use the words of a Member of the Scottish Parliament, Angus McNeil of the Scottish Nationalist Party, "there has been a historic imbalance in UK aviation policy that has held back Scottish airports and the development of direct international links". This is a factor in the forthcoming election in the United Kingdom. CAPA Consulting, an Australian economic consultancy, examined aviation in Manchester and made the following conclusion under the heading, "Lack of a home-based carrier restricts route opportunities":

is clearly not going to help, at least under the present management. Over the course of the last two decades, what was a fit-for-purpose Regional operation at both Manchester and airports was whittled down...

If we give up a valued national airline headquartered in Dublin to become a subsidiary of British Airways, can we expect the company to treat us better than it has treated regions in the UK?

As the Minister is aware, in an open European market, airline companies are free to enter any route in Ireland. I would welcome a decision by British Airways to enter the Irish market but not if the price is the acquisition of Aer Lingus. The only destination to which British Airways operates from Dublin Airport, with its 175 routes, is London. The company does not operate any routes from Dublin, Cork, Shannon, Knock or Kerry airports, which operate 41, 30, 12 and six routes, respectively, and flies to only one of the 190 destinations served by airports in Northern Ireland. This track record does not reflect the undertakings the company has given us.

The Industrial Development Agency put the matter most succinctly in its evidence to the Joint Committee on Transport and Communications when it stated: "Ireland needs frequent, direct and competitively priced flights to multiple destinations in the UK, the United States and Europe". This is not what is on offer from IAG. We need access for the tourism, high-tech and financial services industries. Scotland, Manchester and Birmingham do not have such access and there is no reason IAG will provide it at an Irish airport.

On the issue of the Heathrow slots, the IAG website states that on 30 March 2012, the company divested 12 slots on taking over British Midland. Having knowingly given away 12 slots as part of the acquisition of British Midland in 2012, the company now states it will protect Aer Lingus's Heathrow slots for five or seven years. It knows it must give up slots because doing so is part of the standard EU procedure for dealing with anti-competitive mergers.

I welcome the finding of an opinion poll on the proposed takeover published in a newspaper yesterday. It showed that we have made the case against the proposed takeover in the face of overwhelming odds and public relations work by the airlines. I note that 54% of respondents did not want the proposal to proceed, while the first opinion poll on the issue found 58% of people opposed the proposal. Among supporters of the Minister's party, 33% were found to be in favour of the takeover, while 50% opposed it. The majority against is even larger among supporters of the Labour Party, Sinn Féin, Independents and the Fianna Fáil Party.This merger is not wanted and Mr. Walsh and company should be told to pack their bags and go. We want this independent airline.