EI moving forward!
Today's IT reports that the airline is now preparing to immediately use some of the €535 million of proceeds produced by the sale. Chief executive Dermot Mannion said European manufacturer Airbus was making "positive soundings" about a new deal involving some wide bodied A330 aircraft. He said there was a possibility of two or three of them becoming available sometime in 2008, although they would need to be ordered before that.
But he refused to rule out something emerging from talks with Boeing which is pitching its highly fuel efficient 787 Dreamliner to airlines. Boeing, however, is at a disadvantage because the waiting times for the Dreamliner are longer than the A330.
(It seems to be comparing apples and oranges, so to speak, as getting more A330s is not necessarily inconsistent with an order for 787s, since it will be 2012 before 787-9s become available, assuming that's the version EI would get if it went down that road. If EI were dealing with a lessor which had both 330s and 787s on its books, this might be a strong possibility).
Good news as well from Leinster House; here are two Dail Questions on the Open Skies issue:
Dáil Question
No: 1086 + 1115
*To ask the Minister for Transport the steps he has taken to request EU
permission to proceed with the more liberal Irish/US bilateral negotiated
in the expectation of open skies but now vital to Aer Lingus prospects; the
response he has received from the EU ; and if no response has been
received, has the urgency of a decision has been communicated to them.
- Olivia Mitchell.
* For WRITTEN answer on Wednesday, 27th September, 2006.
Ref No: 28734/06
Dáil Question
No: _______
*To ask the Minister for Transport if the transitional agreement on the
Shannon bilateral arrangement with the US, negotiated in November 2005, and
due to come into force from November 2006 to April 2008 will be suspended
in view of the fact that it was predicated on the successful negotiation of
an EU US Open Skies Agreement; and if he will make a statement on the
matter.
- Pat Breen.
* For WRITTEN answer on Wednesday, 27th September, 2006.
Ref No: 29484/06
Answered by the Minister for Transport
(Martin Cullen)
Reply
I propose to take questions 1086 & 1115 together.
In November 2005 EU and US negotiators concluded work on the text of a
first-phase EU-US Open Skies agreement. The text was unanimously endorsed
at the December 2005 Transport Council subject to sufficient progress by
the US side on opening up ownership and control of US airlines to EU
investors The formal US process of changing its ownership and control rules
was expected to be concluded in August 2006 so that a final decision could
be taken at the October Transport Council. However, due to difficulties on
the US side the rule-making process has been extended.
I am fully committed to the view that the liberalisation of air transport
services between Ireland and the US will deliver major benefits for Irish
business and tourism. I have had detailed discussions with EU Commissioner
Barrot and have strongly urged the Commission to continue engagement with
the US Authorities so that they can be in a position to bring forward a
proposal for decision at the October Transport Council that will
incorporate the Irish transition arrangements.
In the absence of progress at EU level I intend to seek to implement, in
accordance with the applicable Community law, the essential elements of the
transitional arrangements by way of an amendment to the Ireland-US
bilateral Air Services Agreement.
This is obviously of immense importance to EI, not just because of the new routes offered, but because of the certainty it gives; I doubt very much if the minister would be as forthright about his intentions if this plan was unlikely to get EU approval.
In another bit of good news, the US embassy has announced a new deal with the Irish govt, whereby all Irish flights will use domestic gates at US airports:
New agreement between the Irish and US governments will see flights from Irish airports will soon be allowed to arrive at the domestic gates of United States airports, enabling passengers to simply collect their luggage and go.
Under plans announced by the US embassy yesterday, passengers will undergo full "pre-clearance" by US officials working at Dublin and Shannon airports.he United States Embassy wishes to announce that consultations with Irish authorities are now underway for CBP to introduce full pre-clearance, which would supplement current passport screening at Dublin and Shannon Airports with the agricultural and customs checks that are conducted at US airports for arriving passengers.
"The consultations, which have been led by Ambassador James C. Kenny on the US side, are focused on prospects for the provision of necessary facilities for full pre-clearance, in connection with Dublin Airport's construction plans and Shannon Airport's development strategy."
Hugely significant, I think.