Irish gov't under pressure as EU aims for open skies?
Today's Irish Indo carries the following story: (extract)
THE European Commission will relax its rules on airline mergers if member states agree to a direct EU/US transatlantic deal, it was revealed yesterday.
The new move, proposed by the Competition Commissioner, Mario Monti, could make Aer Lingus more attractive to investment from other European airlines, which have so far refused to get involved with the struggling flag-carrier.
However, in order to agree a transatlantic air deal, the Shannon stopover would have to be abolished.
At present, the 15 EU member states all hold individual bilateral agreements with the US, which, in Ireland's instance, imposes the compulsory stopover on 50pc of all Ireland-US flights.
If this is to come about, the only country standing in its way is Ireland, which still insists on the stopover; all others have voted for an EU:US bilateral. I believe the Irish gov't wanted to hold out until after the next election and drop it then (obviously believing the midwest electorate would be fooled by this). However, it now looks as if this is intended to be in place by next Summer.
The government has very few options if it chooses to resist. Aer Lingus may have a case against the government, for the European courts and although it has not been the airline's practice to stand up to the government, it would be a good way to assert its independence, if a sale of part of the airline is to be considered. CO and DL would possibly consider an ultimatum, given that a pullout by them could also result in EI losing LAX, something even MO'R would not be willing to accept.
Seems now, after all, they are on the back foot. The Irish gov't is no doubt lobbying fiercely against this, but hopefully the end of this nonsense is at hand . . .