Bernard Durkan (Kildare North, Fine Gael)
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Question 277: To ask the Minister for Transport if air and sea transport costs to Europe and the US are sufficiently available and competitively priced to meet domestic and commercial needs; and if he will make a statement on the matter. [6190/09]

Noel Ahern (Dublin North West, Fianna Fail)
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As an island nation, Ireland is particularly reliant on our shipping and air services for the maintenance and creation of business, trade and tourism links with Europe and the rest of the world.

Air

The market for air services in the European Community was fully liberalised in 1992 and the EU-US market was liberalised more recently under the EU-US 'Open Skies' agreement which came into effect last year.

Within this competitive market structure, there are no restrictions on the routes that can be operated and airlines can freely set fares for the services provided. The opening up of the market has completely transformed air travel in Europe and has brought enormous benefits to the European economy and particularly to the Irish economy.

The benefits of liberalisation are clear to see both in the context of the European market and the Ireland-US market. The number of routes available into and out of Ireland to and from other points in Europe has increased dramatically and fares have fallen significantly in the period since the market was opened up in 1992. With regard to the Ireland-US market, the benefits of the EU-US Open Skies agreement are already evident with a number of new routes being operated between Ireland and the US (e.g. Aer Lingus has commenced new services to San Francisco, Washington Dulles and Orlando).

Sea

Ireland has one of the most extensive short sea networks in Europe with multiple operators and various alternate modes of shipping available. Over the past decade, there has been an 80% increase in the number services between Ireland and the UK and European markets.

Shipping operates in a highly liberalised global market environment, which has enhanced competition on the key Irish routes. The ongoing development of our shipping network has provided the Irish market with more competition, choice and frequency in accessing the global market place.

Irish companies seeking to access the US markets have regular daily sailings from around the island of Ireland that connect with the main deep-sea intercontinental services. 6 of the top 10 largest global shipping groups have established sales and operational offices in Ireland.