The Dept of Transport has confirmed that it will be seeking approval next month (i.e. after the privatisation) from the EU Commission to allow the Irish/US deal agreed last November to go ahead. The Sunday Business Post reports that there have been concerns from fund managers (yeah, and everyone else for the past ten years!
) that the lack of access would deter investors, since long haul is supposed to be the key to the airline's growth.
http://www.thepost.ie/ezineSBP/story.asp?storyid=17164
Although there has to be some disappointment that the deal cannot happen sooner, the fact that the approach to the EU is being made public must indicate some level of confidence at the outcome. That said, the govt must be prepared to play hardball. There are issues of Competition Law, insofar as if the Commission rejects the govt's approach and insists on the Irish deal continuing as is, the effect of this will be to maintain a competitive disadvantage for EI (and indeed, Ireland generally). That said, it is difficult to see what the EU could possibly gain from getting in the way, particularly as the Irish situation meets the EU's conditions for giving the go ahead: (i.e. that the proposed bilateral meets the EU's requirements - it was negotiated under EU supervision, AND the fact that increased Irish access could have no effect on ongoing negotiations, since the issue causing the delay - ownership of US carriers - is of no relevance to EI).
Getting the go ahead for increased access is particularly important for EI because for the first time, it will give is certainty as to when it can add new routes and consequently, when it can add capacity. Assuming the EU gives the green light next month, it will make life much easier for EI to conclude negotiations with manufacturers and lessors for adding capacity on the long haul routes.