Arthur Morgan (Louth, Sinn Fein)
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Question 49: To ask the Minister for Transport if he has considered the need to contribute to an all-Ireland strategy on aviation in view of the ongoing strategic reviews of the running of airports and the ownership and funding of Aer Lingus; if he has had meetings or communications with either airport authorities or airlines in the Six Counties; and if he will make a statement on the matter. [15587/05]

Martin Cullen (Waterford, Fianna Fail)
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As a result of the full liberalisation of the European aviation market in the 1990s, there are no longer any Government or EU controls on market access in the Irish aviation market. This influences my overall approach to that market. Liberalisation of the European air transport sector has ensured that fares, routes and frequency of services operated by carriers at all airports on the island of Ireland are entirely commercial decisions for each airline, in consultation with the relevant airport authorities.

The Government has a long-standing policy of assisting Derry Airport, in the interests of North-South co-operation, and in recognition of the fact that the natural catchment area of the airport includes east Donegal. The Government recently approved proposals for the allocation of capital funding for City of Derry Airport in co-operation with the British Government. A joint funding package totalling €15 million was approved, in principle, in response to requests from Derry City Council.

Since 2001, my Department has been supporting scheduled air services between Derry and Dublin through the PSO air service programme and tender proposals for the operation of services on the route for the next three years are currently being considered.

Specifically in relation to Aer Lingus, it is this Government's wish that the airline continues to make a significant and valuable contribution to the economic and tourism development of the country. Everyone would agree that it can only do this if it can compete successfully, operate profitably and has access to a variety of funding sources to facilitate growth.

I am very anxious, in the interests of the airline and the Irish economy, to move forward to achieve clarity on the future of Aer Lingus as soon as possible. In that context, the Government will be making a decision shortly on the necessary arrangements to be put in place to facilitate an investment transaction.