Written answers

Wednesday, 24 March 2010

Department of Transport

Airline Restructuring

9:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 135: To ask the Minister for Transport his views on whether the current restructuring at Aer Lingus is likely to affect any of his projections set out in Transport 21; and if he will make a statement on the matter. [13092/10]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 136: To ask the Minister for Transport the action he has taken in the current restructuring plan for Aer Lingus in view of the likely impact of recent developments on his air transport policy as announced previously; and if he will make a statement on the matter. [13093/10]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 137: To ask the Minister for Transport the way his shareholding in Aer Lingus is being utilised to influence policy; and if he will make a statement on the matter. [13094/10]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 139: To ask the Minister for Transport if he plans to make any intervention or positive suggestion in the current situation at Aer Lingus; and if he will make a statement on the matter. [13096/10]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 140: To ask the Minister for Transport if he has any concerns that current restructuring plans at Aer Lingus, including those affecting cabin crew, pilots and ground staff, are likely to have a particular impact on the airline with particular reference to alignment with his air transport policy. [13097/10]

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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I propose to take Questions Nos. 135 to 137, inclusive, 139 and 140 together.

The implementation of the cost restructuring plan at Aer Lingus is entirely for the Board, Management and Staff of the company and it is not open to the Government to intervene. The industrial relations machinery of the State remains available to assist the parties where difficulties exist. Indeed, the Labour Relations Commission recently intervened to invite the parties to separate talks on 19th March. Arising from those talks, I understand that IMPACT is to ballot cabin crew members again on the company's cost restructuring plan which the four other groups at the company had voted to accept.

The duties of the three Government appointed directors to the board of Aer Lingus derive from the Companies Acts and, as such, the directors are obliged to pursue the best interests of the company. Subject to that duty, the three Government appointed directors are requested to seek to ensure that all decisions of the company that have significant implications for wider Government, aviation or regional development policies are considered at board level. In any such decisions they are directed to seek to reconcile commercial and public policy objectives.

From an aviation policy perspective, the Government wants to see a financially stable and viable Aer Lingus competing in the Irish air transport market. The cornerstones of Government aviation policy are competitiveness and connectivity. A viable Aer Lingus is key to ensuring the achievement of these objectives. I note that the Question relating to the impact on the Social Insurance Fund is also directed to my colleague, the Minister for Enterprise, Trade & Innovation, who will address the Question insofar as it relates to his remit. The restructuring of Aer Lingus has no bearing on Transport 21 projections.

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