Seanad debates

Thursday, 1 October 2020

Aviation Industry: Statements

 

10:30 am

Photo of Martin ConwayMartin Conway (Fine Gael) | Oireachtas source

I also welcome Deputy Naughton to the House on her first official visit as Minister of State. I recall when she became a Senator in 2013. Her rise has been spectacular but it has been grounded in humility. It is the result of a sharp intellect and hard work. I wish her all the best. I know she will do a phenomenal job. She has taken on a critical role at a very difficult time.

I listened to what Senator Dooley had to say and I find myself in agreement with most of his analysis. I welcome the initiative in which he has engaged with regard to the HSE, staff at the airport and any marrying up that can be done with regard to contact tracing. This is an extraordinarily difficult time for all staff in all the airports in this country. Earlier I heard that as many as 5 million jobs may be lost in the aviation industry as a result of this pandemic. That is a very sobering thought. This is a worldwide problem but we are, of course, interested in our own patch.

We are an island nation so aviation is extremely important to us. We can be enormously proud of our tradition and heritage in respect of aviation. To a large extent, we invented aircraft leasing. Guinness Peat Aviation, GPA, was a groundbreaking, worldwide company although it was ahead of its time. We can see the results of its work today in what Ennis businessman, Dómhnal Slattery, has achieved with Avolon and in what others have achieved in companies such as Genworth. These companies are still operating. I was speaking earlier to somebody who works in Genworth and there are more people who are not paying for the leasing of planes than people who are. It is easy to count those who are paying these days and that is a worldwide problem. It is the same in China, America and Russia and throughout the world.

I consider Shannon Airport to be the anchor tenant of the mid-west just as Dunnes Stores might be the anchor tenant in a shopping centre. The region depends on it and, when it is not operating, the region does not operate efficiently or effectively. Before Covid-19 emerged as a problem, there were difficulties in Shannon. Dublin passenger numbers were not capped so Shannon Airport was competing against a monster. This was extremely difficult. The effort made to gain independence for Shannon Airport in 2012 and 2013 was supported by industry and business representatives across the board. As a matter of fact, Senator Dooley and myself were two of only a few voices from the region to register a cautionary note. The word "objection" might be too strong but I certainly articulated a contrarian view at the time. I could not see how Shannon Airport could compete against Dublin Airport as an independent entity unless it received enormous support from central government, which was not going to be possible. My concerns have been proven correct. There could have been a sensible realignment of the airport's position within the DAA group.Cork did not decouple from the DAA, but it was performing well. Obviously, it is facing challenges now and Senator Buttimer will speak about those in due course.

I welcome the fact that the Minister of State, her officials and the Department are reviewing the structure of Shannon Airport. That is important. We need a national aviation policy. Connectivity, particularly with Heathrow, is critical for Shannon. I agree with Senator Dooley that we must keep business connectivity in mind. We will each be lobbied about various holiday resorts around Europe, but that is not the priority. What we want is quality connectivity, not yellow-pack connectivity.

We will have to undertake a root and branch review of, and rebuild, our aviation industry. I am looking forward to clarity being provided on 13 October at the meeting in Brussels. It will be important. As an island nation, we need connectivity, not just in our capital city, but along the west coast as well. We need connectivity with Heathrow and the east coast of America. We also need connectivity with hubs like Schiphol.

A great deal can be said. As the Minister of State well knows as someone from Galway, thousands of people along the west coast are on a knife's edge because they do not know whether they will still have a business as a result of Covid-19 or whether those involved in business will have jobs. The aviation industry, in particular Shannon Airport, has a critical role to play when we come to a post-Covid era, which I hope will emerge in the not-too-distant future thanks to vaccines.

I will make brief point on an issue that I have been raising with the Minister of State in recent months, namely, political representation on the Shannon board. She has taken that on board. Perhaps the representative could be an executive from a local authority in the region. Whatever future structure is being considered, though, there must be linkages with people who know tourism. Clare County Council, in particular, has a fantastic record of building tourism numbers and products, for example, the Cliffs of Moher visitor experience.

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