Written answers

Tuesday, 18 October 2005

9:00 pm

Photo of Pat BreenPat Breen (Clare, Fine Gael)
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Question 564: To ask the Minister for Transport, further to Parliamentary Questions Nos. 366 and 381 of 4 October 2005, if he will list the additional opportunities for Shannon Airport arising from an EU-US open skies regime in the context of the conclusion that the regime will present some difficulties for Shannon unless active and forceful supporting activities are undertaken (details supplied). [29042/05]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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As I stated in my earlier reply, to which the Deputy refers, the restructuring of the State Airports, including Shannon, is intended to enhance their regional focus and I am encouraged by the close co-operation between the new Shannon Airport Authority and the other regional development bodies in the area.

There is work under way in my Department on a ten year transport investment framework which will address the future infrastructural requirements of the mid-west region. As the Deputy will also be aware, the restructuring of the State Airports, including Shannon, will be progressed in the light of the assessment in due course, by both myself and the Minister for Finance, of the business plans which are currently under preparation by the three airport authorities.

As I have stated in previous replies, the development of an EU-US open skies regime provides many opportunities for Shannon Airport to contribute to the development of the mid-west. The liberalisation of the aviation market between the EU and US will mean more, not fewer, opportunities for Shannon to develop new routes into North America. This is because, at present, Irish airlines are restricted to only five cities in the US for normal scheduled services. However, the advent of open skies would mean that Irish or European airlines can fly into any airport in the US. The opening up of US airports to services from Ireland, for example, provides an opportunity for the development of Shannon as a hub for passengers or cargo coming from eastern Europe going onwards to the US. It is clearly a matter for Shannon airport to pursue these kinds of opportunities. However, without open skies, these opportunities simply will not exist.

There is clearly pent up demand for service between Ireland and the US. Aer Lingus, for example, has been approached by several airports in the US with a view to beginning services. It will be a matter for Shannon airport to compete and to lobby Irish, European and US airlines to take advantage of this potentially huge increase in new services. This is the central thrust behind the Government's policy of making the State airports independent of each other so that they can compete with each other and therefore collectively provide the best and most optimal level of services for Ireland.

The report the Deputy refers to concludes that an EU-US open skies agreement will be beneficial for Ireland, and that Irish business, tourism and aviation will all get a boost. The report is clear that Shannon will maintain links to the US but that it must improve its links to Dublin and Europe as a way of underpinning its US services. In that context, I am encouraged by the recent new services that are starting up from Shannon into Europe and the UK. The report mentions improving transport links around the west of Ireland, and this is being addressed in the ten year infrastructural plan that is being prepared.

I assure the Deputy that it has been the consistent policy of this Government that any change in transatlantic arrangements will be accompanied by an appropriate transitional arrangement to enable a smooth phasing in of open skies with the US in the future.

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