Dáil Éireann - Volume 412 - 05 November, 1991

Written Answers. - Air Transport Returns.

11. Mr. Nealon asked the Minister for Tourism, Transport and Communications if he has satisfied himself that, in the current financial year, adequate steps have been taken by Aer Lingus to ensure that their air transport losses of last year are not repeated; and if he will outline the current information [55] available to him in relation to their likely returns for the present year.

Minister for Tourism, Transport and Communications (Mr. S. Brennan): In response to the combined effects of recession affecting the UK and US markets, together with the war in the Gulf, Aer Lingus implemented in December 1990 a recovery plan designed to achieve internal savings of £20 million in the current year.

I am advised by Aer Lingus that all of the savings envisaged in the recovery plan have been included in full in the current year's budget and that most, if not all, of the savings will actually be achieved.

Nevertheless, the company inform me that the results for air transportation continue to fall short of budget despite their best efforts. This is substantially due to passenger revenues remaining below planned levels as is the case throughout the industry.

I am assured by Aer Lingus that every avenue to achieve improved revenue and lower costs is being vigorously pursued. It is too early to make definitive predictions as regards the likely outcome for the current year.