Next steps in aviation policy
The proposed sale of Aer Lingus is Ireland’s highest profile transport story but the forthcoming aviation policy will also have a major influence on the sector’s future.
The State’s new aviation policy is due to be published later in May amid the continuing debate over the proposed sale of Aer Lingus. The Government maintains that its minority (25 per cent) stake in the company will not be sold to IAG unless market conditions are favourable, the terms of the sale are satisfactory to the Government, and an acceptable price can be secured.
Aer Lingus holds almost half of the seats on flights using Dublin, Cork and Shannon airports. The three previous takeover bids have been opposed by the Government on competition grounds, with official policy preferring competition between at least two airlines with significant home bases. Aer Lingus’ board has commented that joining IAG will grow the business and the wider economy.
IAG has indicated that it is willing to maintain Aer Lingus’ existing Heathrow slots indefinitely and that existing services from Heathrow to Shannon and Cork will continue for five years – a timeframe which the Government wants to see extended. Aer Lingus is satisfied with the proposed €2.55 share value arising from the sale but the Government cannot yet give an “irrevocable commitment” to accept an offer to dispose of its shares on that basis.
The draft aviation policy was published last May and the final version was due to be published by January 2015. It prioritised safety and suggested a second runway at Dublin Airport to help reach new destinations in the Asia-Pacific region. Regional airports should be financially self-sufficient by 2024.
Some aspects of the draft policy have already been implemented e.g. the joint British-Irish visa scheme for Chinese and Indian nationals, the establishment of the Shannon Group, and a National Air Transport Facilitation Programme (for 2015-2018). The programme allows for an annual review of Irish legislation according to international aviation standards. The aviation policy was originally due to be published by the end of 2014 but further consultation was considered necessary.
Three proposals were scheduled for 2015 i.e. updating the National Action Plan for Emissions Reductions to include aviation-related emissions, publishing an air freight policy, and commencing a feasibility study for a trusted traveller programme. The department plans to make more progress on these issues during 2015 after the final policy is published.
The latest aviation statistics (for 2013) show the considerable scale of the sector in Ireland.
24.8 million passenger journeys were made through Irish airports in 2013 with 20.1 million going through Dublin Airport, 2.3 million through Cork and 1.3 million through Shannon. Air freight totalled 128,067 tonnes.
