Michael McGrath (Cork South Central, Fianna Fail)
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612. To ask the Minister for Transport, Tourism and Sport the number of slot pairs at Heathrow Airport owned by Aer Lingus; the restrictions that were applied to the sale of these following the flotation of Aer Lingus; if these restrictions still apply; and if he will make a statement on the matter. [2710/15]

Paschal Donohoe (Dublin Central, Fine Gael)
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Airport slots are a right granted to an airline which allows the airline to schedule a landing and departure during a specific time period. The slots are not 'owned' as such by the airlines. However, at congested airports, such as Heathrow, a secondary market has developed that has allowed airlines trade slots to meet their changing business needs.

The allocation of slots at congested airports in the EU is governed by EU Regulation. Aer Lingus has access to a significant portfolio of slots at London Heathrow on the basis of so-called 'grandfather rights'. The airline has these rights because it has been operating services to Heathrow for many decades. As long as Aer Lingus continues to use these slots, the airline has the right to retain them from season to season.

At the time of the Aer Lingus IPO in 2006 a specific mechanism was built into the company's Memorandum and Articles of Association whereby any proposed disposal of Heathrow slots, over which the airline had rights at the time of listing on the stock exchange, may be subject to a requirement for a resolution approved by shareholders voting at an extraordinary general meeting. Where a resolution by shareholders is called for, the voting threshold to prevent a disposal of Heathrow slots proposed by the Company is such that the percentage vote against disposal at the EGM must be greater than the percentage of the Company’s shares held by the Minister for Finance plus 5% (or 25% if greater). This mechanism still applies today.

The ability of the State's shareholding to block a disposal of slots is not guaranteed under this mechanism, as the support of at least another 5% of shareholders is required. Furthermore this mechanism relates only to a disposal - the company does not require any shareholder approval to change the routes for which it uses the slots.