Bernard Durkan (Kildare North, Fine Gael)
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Question 488: To ask the Minister for Transport if he has evaluated the extent of the potential benefit of the open skies policy in respect of air travel to and from Ireland; and if he will make a statement on the matter. [13008/07]

Bernard Durkan (Kildare North, Fine Gael)
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Question 489: To ask the Minister for Transport the extent to which he expects the open skies policy to impact positively or otherwise on Irish carriers; and if he will make a statement on the matter. [13009/07]

Martin Cullen (Waterford, Fianna Fail)
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I propose to take Questions Nos. 488 and 489 together.

A number of reports (the Brattle Report for the European Commission, the Report of the Tourism Policy Review Group to the Minister of Arts, Sport and Tourism, and the Air Transport Users Council (ATUC) of the Chambers of Commerce of Ireland Report into Open Skies) all supported moving to open skies with the US, and emphasised the significant benefits to Ireland when this happens.

The proposed Air Transport Agreement between the European Community and its Member States on the one hand and the Unites States on the other is now to be signed at the EU US Summit on 30 April. While it will not enter into effect until 30 March, 2008, the transitional arrangements relating to Ireland are already being applied.

From the perspective of air carriers the most immediate benefit is that Irish and other European carriers are permitted to launch services on three new US routes. Aer Lingus has moved quickly to avail of the new opportunities and has already announced that it proposes to commence new services to San Francisco, Orlando and Washington Dulles later this year.

From 30 March, 2008 it will be possible for Irish and European carriers to provide services between Ireland and any U.S. airport.

The benefits for Ireland will be very significant in terms of increased tourism and economic activity. The opportunity for increased tourism is obvious. The Irish Hotels Federation has estimated that the Open Skies deal could double the number of US visitors to 2 million within seven years, generating an extra €1 billion for the Irish economy.

From a business perspective new direct connections will open access to new markets and business linkages. This will provide a further impetus to the close economic relations that already exist between Ireland and the US.