Michael Lowry (Tipperary North, Independent)
Link to this: Individually | In context | Oireachtas source

242. To ask the Minister for Transport, Tourism and Sport if he will provide a guarantee that the Government will ensure that Ireland’s Heathrow slots will be protected if it goes ahead with the sale of its stake in Aer Lingus; and if he will make a statement on the matter. [2965/15]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

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 or the State. 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' under the Regulation. 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, it will retain the rights to them from season to season.

Following the announcements on 18 December and more recently on 9 January that IAG had made approaches to Aer Lingus about a possible offer for the company, the Irish Takeover Panel has deemed that Aer Lingus is now in an 'offer period'. The Takeover Panel Rules in relation to communications apply to all parties during an offer period, including the Government as a shareholder, and all parties must apply the highest standards of care to any statements made on the matter.

Currently, no formal offer has been made to Aer Lingus' shareholders. If an offer is made it will, of course, be given very careful examination before the Government takes any decision in relation to its shareholding.  In late 2012, following a third hostile takeover bid for Aer Lingus, the Government indicated that it would not be prepared to sell the shareholding in circumstances which could significantly impact on competition and connectivity in the Irish market. Such considerations would also be foremost in our minds if a further offer is made for the company.