Written answers

Tuesday, 20 October 2009

9:00 pm

Photo of Joe CareyJoe Carey (Clare, Fine Gael)
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Question 312: To ask the Minister for Transport if he will use the State's 25% shareholding in Aer Lingus to prevent the loss of 102 cabin crew jobs at Shannon Airport and thereby prevent the loss of Shannon's transatlantic base; and if he will make a statement on the matter. [37341/09]

Photo of Kieran O'DonnellKieran O'Donnell (Limerick East, Fine Gael)
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Question 317: To ask the Minister for Transport the way he will use the Government's strategic shareholding in Aer Lingus in order to maintain a viable base in Shannon Airport and sustainable transatlantic routes from Shannon to support the current Aer Lingus jobs based in Shannon; and if he will make a statement on the matter. [36781/09]

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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I propose to take Questions Nos. 312 and 317 together.

Decisions on commercial and operational matters at Aer Lingus are a matter for the Board and management of the Company and it is not open to the Government to intervene in such matters. Aer Lingus is an independent Company and it has to make decisions on a commercial basis. The State's 25% shareholding does not confer on the Government a right to influence commercial decisions at the Company.

The Government is satisfied from all of the information available to it that a major restructuring of the Group's cost base is essential if Aer Lingus is to survive. This restructuring is a matter for the company. It is my belief that if that restructuring does not take place urgently the airline will find it difficult to survive in the long term and all jobs in the company could be at risk. I understand that a consultation process between management and staff is now underway and I would encourage all parties to engage constructively in that process. The industrial relations mechanisms of the State are available to assist in reaching an agreed outcome for all concerned.

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