Mulcahy: IAG commitments will protect Shannon services

DUBLIN, Ireland – Clare Fine Gael Senator Tony Mulcahy has said he believes the proposed sale of Aer Lingus to IAG, which has been approved this evening by the Irish Government, will provide the neces

DUBLIN, Ireland – Clare Fine Gael Senator Tony Mulcahy has said he believes the proposed sale of Aer Lingus to IAG, which has been approved this evening by the Irish Government, will provide the necessary security for Shannon Airport’s transatlantic and Heathrow connectivity.

The Shannon-based Senator, who threatened to resign the party whip if the Government sold its 25.1% shareholding in Aer Lingus without adequate guarantees, says he is satisfied that the necessary assurances are in place and that Shannon Airport can continue to prosper under the new airline owners.

Senator Mulcahy stated: “I was not happy with the assurances originally tabled by IAG Chief Executive Willie Walsh at the Oireachtas Transport Committee hearing during which he explicitly stated to me that he would not extend a similar guarantee in relation to Aer Lingusโ€™ transatlantic services to and from Shannon Airport as he had presented for the Heathrow slots. Such a situation was untenable in my opinion and I made by feelings known both publicly and in person to Transport Minister Paschal Donoghue.

“However, thanks to the Government’s diligence during the negotiation process, IAG’s position has since changed and they are now willing to retain existing transatlantic connectivity and commit to developing new routes,” he added.

Senator Mulcahy outlined the details of the deal reached between the Government, Aer Lingus and IAG.

“The Minister for Finance and future Ministers can prevent the disposal of all Aer Lingus slots and they can only be disposed of following the Minister’s agreement. This is a good deal considering the Government would presently need to acquire an additional 5% shareholding to block such a move. Meanwhile, the Aer Lingus brand and Aer Lingus Headquarters in Ireland will be retained.

“In relation to the use of slots, a 7-year guarantee is to be put to be put in place on all Heathrow slots, with the last two years being subject to airport charges not being increased beyond inflation. Aer Lingus’ existing flights and frequencies will be maintained. All Aer Lingus flights and frequencies to Boston New York will be retained and strengthened while the North Atlantic joint business partnership arrangements between Aer Lingus and American Airlines to Philadelphia, and British Airways and Shannon Airport will be retained enhanced and strengthened .

“British Airways will strengthen its throughput of Business Class passengers through Shannon’s US Preclearance Facility which will allow for pick-ups in Shannon. This is hugely important for our business community given them high quality access the USA.

“I wish to compliment Minister Paschal Donoghue and his negotiating team for putting the best interests of the country and the business and tourism sector of the west of ireland front and centre. These negotiations needed to be conducted in a transparent and pragmatic manner and I am satisfied that this has been in the case with the end result that an acceptable compromise for all parties concerned has been reached,” added Senator Mulcahy.

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Linda Hohnholz

Editor in chief for eTurboNews based in the eTN HQ.

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