Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

Question 54: To ask the Minister for Transport his views on a new aviation white paper on Ireland's national strategic air connectivity; his further views on recent proposals by Aer Lingus to end flights between Shannon and New York and Chicago during the winter season; if he has been briefed on this matter by the Government appointed directors to Aer Lingus; if he will publish the Government's cost benefit analysis on the €10 air travel tax; his views on new initiatives to enhance the connectivity of Shannon, Dublin and Cork Airports; and if he will make a statement on the matter. [28378/09]

Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

Question 57: To ask the Minister for Transport the initiatives he is considering to address all of the major issues in the aviation sector including the loss of aviation jobs at airline operators and in the aviation maintenance and engineering industries, the declining volume of passengers in the travel and transport industry and the impact of the new €10 airport departure tax on travel and tourism; and if he will make a statement on the matter. [28377/09]

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 54 and 57 together.

The aviation sector and particularly the airline sector is extremely cyclical in nature. The airline sector is being badly affected by the current global economic downturn which has led to a significant reduction in consumer demand for air travel, particularly on long-haul routes. The International Air Transport Association, which represents 230 airlines, comprising 93% of international air traffic, has projected industry wide losses of $9 billion this year. Revenues are expected to fall by 15%, which is more than double the rate of decline experienced following the September 11 terrorist attacks. With regard to passenger numbers, Airports Council International Europe has reported that Europe's airports posted an average fall of 12.4% in passenger traffic in the first quarter of 2009 compared to the same period last year. The International Air Transport Association reports also reflect such declines.

My Department's main objective is to assist airports and airlines to respond to the downturn in the sector, while maintaining the highest possible levels of connectivity between Ireland and key markets. Across the world, airlines have been cutting capacity and routes and recent decisions by Aer Lingus, Delta and Ryanair reflect this trend. In a global market, which is fully liberalised within the EU, the scope for measures to provide direct support to airports and carriers is very limited. The focus must therefore be on managing through a severe downturn and being well positioned for an upturn when economic circumstances improve.

The suspension of some key transatlantic services for the winter season recently announced by Aer Lingus and Delta is extremely disappointing. I am particularly concerned at the impact of these developments on connectivity of the Mid-West region to the wider US market from both a business and tourism perspective. I made these concerns known on behalf of the Government to the Aer Lingus Chairman when he informed me of the proposals. I immediately wrote to the State's three directors to remind them of their mandate and requested that they take account of Government policy on connectivity, regional development and industrial development in the board's consideration of the matter. It is acknowledged that the duties of the State nominated directors on the board of Aer Lingus derive from the Companies Acts and that they are obliged to pursue the best interests of the company.

The Government does not accept that the decline in passenger numbers experienced by the airports in the State is due to the introduction of the air travel tax. The present decline in air travel is an international phenomenon. In the case of Ireland the decline in passenger numbers through our airports is broadly in line with our international counterparts including those airports where there is no travel tax in place. This downward trend has been evident for periods prior to the introduction of the air travel tax. Furthermore, passenger numbers for other modes of transport have also experienced broadly similar declines.

Looking to the future, the challenge will be to ensure that Irish aviation is well positioned to take advantage of the economic recovery when it comes. To this end my Department will:

continue to liaise with carriers to protect and promote connectivity between Ireland and key markets;

take measures to enhance our bilateral aviation relations with emerging markets such as China and India;

finalise arrangements for the implementation of US Preclearance for flights from Shannon from end July 2009 and from Dublin when the new terminal opens in late 2010;

oversee the tender competition for an operator for Terminal 2 and ensure that the Dublin Airport Authority maximises cost efficiencies;

ensure that the Dublin Airport Authority strikes the right balance between managing short-term financial pressures and ensuring longer-term financial sustainability at all 3 State airports;

liaise with Department of Enterprise, Trade and Employment, IDA, Enterprise Ireland and DAA to facilitate development of aviation maintenance projects in particular to replace jobs lost at SR Technics.