Denis Naughten (Longford-Roscommon, Fine Gael)
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Question 1231: To ask the Minister for Transport if, in view of the changing dynamics within the air transport sector, he will publish a white paper on the aviation sector; and if he will make a statement on the matter. [1169/07]

Martin Cullen (Waterford, Fianna Fail)
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The Irish aviation sector plays a vital role in our continuing economic development and is a critical feature of the growth in tourism and trade. Aviation is particularly important for us because we are an island nation.

The key objectives of Irish Aviation policy and the strategies being pursued to achieve those objectives are set out in my Department's Statement of Strategy 2005-2007 which was published on 29 July 2005 on the Department's website. I have no plans at present to publish a Green or a White paper on the subject.

In broad terms the main objectives of Irish aviation policy are: to facilitate and encourage as wide a range as possible of safe, reliable, regular and competitive commercial air services for Irish tourism, trade and industry; and to ensure Ireland's airports can provide cost competitive and appropriate infrastructure to meet the current and prospective needs of the aviation sector.

These objectives will be pursued by concluding liberal regulatory arrangements with non-EU States and by seeking to facilitate greater access on transatlantic routes by concluding the EU/US Open Skies agreement. Open Skies offers significant growth and hub opportunities with considerable potential benefit to the Irish economy. I am seeking to bring this issue to conclusion in an EU-US context. If agreement on an EU/US agreement cannot be reached in a reasonable timeframe, I will seek to progress this bilaterally with the US authorities.

The successful flotation of Aer Lingus has provided the airline with access to new equity to enable it to compete effectively and fund the growth of its business. The company now has new equity of the order of half a billion Euro, which provides it with a unique opportunity to pursue its expansion based business strategy. It will be a matter for the Board of the company going forward to decide on its future strategy. In relation to the hostile take-over bid by Ryanair, the Government's view is that Ireland's strategic objectives for aviation would not be well served by such a takeover. The EU Commission recently announced that it has decided to initiate a full investigation of the attempted hostile takeover of Aer Lingus. The decision of the EU Commission is consistent with my view that the proposed merger would raise significant competition issues. I remain opposed to the attempted takeover as I believe that a merger between the two companies would have a detrimental impact on competition in aviation services.

With regard to Airports, it is Government policy to foster airport development, particularly at the three state airports, in order to encourage as wide a range as possible of reliable, regular and competitive air services to and from Ireland. Policy is also aimed at facilitating the contribution of the regional airports to balanced regional development.

Airport development in Ireland must take into account the needs of low cost and full service airlines. Airport development should also enable the development of critical long haul business to North America and to other long haul destinations.

Major development will be required at our key gateway airport, Dublin Airport, over the next decade. Among the priorities are a new Terminal 2 and pier and apron facilities and a 2nd runway that will allow the airport to respond to demand and to improve the overall passenger experience for all users.