Ben perhaps you should send him this from Aviation Week.
Read what happens when your government supports you. Another New Zealand success story perhaps?
Quote:
The Irish government and the Irish civil aviation authority (IAA) have adopted a more forward-thinking orientation on aviation than most of their, often much larger, counterparts in Europe.
The policy is paying off — big time. Ireland is one of the smallest countries in Europe, with just 4.6 million inhabitants, yet about half of the world’s leased aircraft are registered in the country and the world’s first duty-free shop was established here. It is also home to Europe’s largest airline by passenger count and the world’s largest airline in terms of international enplanements: Ryanair.
Aviation executives in Ireland commonly joke that it took an Irishman to get International Airlines Group (IAG) off the ground and grow it into an agile, profitable and diversified airline group: IAG CEO Willie Walsh, born in Dublin and a former Aer Lingus CEO.
Aviation is central and strategic to the Irish economy, IAA CEO Eamonn Brennan noted. “We live on an island; we don’t even have bridges. This is a key thing.” Aviation contributes just over €4 billion ($4.3 billion) directly to the Irish GDP, comprising €1.9 billion from aviation, €1.3 billion through the supply chain and €0.9 billion from associated spending by people employed in aviation.
It supports 26,000 jobs directly and a further 16,000 in the supply chain. Ireland’s tourism industry, which is dependent on aviation, accounts for another €5.3-billion GDP contribution and 180,000 jobs.
The Irish government has earmarked aviation—along with information technology and the pharmaceutical industry—as high-value sectors to the Irish economy. It launched a new aviation policy in 2015, after two years of consultation. “This government policy says that we have to make the industry more competitive and innovative.
The global aviation industry continues to expand and is estimated to double over the next 20 years. This presents opportunities for Ireland in virtually every area of aviation such as airlines, pilot training services, satellite-based air traffic control services and aircraft leasing services,” Brennan said.
Aer Lingus CEO Stephen Kavanagh told the Executive Report that Ireland’s embracing of deregulation and liberalizing access had paid off.
“It’s a very small economy in the global context, but it’s a very open economy, one of the most open economies and on a par with Singapore,” he said.
“Ireland has recognized the requirement for connectivity and, as an island, sees that air transportation is how that’s delivered. We have very strong indigenous competition with Ryanair, but there’s the ability for us to compete not only in the Irish market but also across the Atlantic and in Europe. Deregulation has allowed us to grow scale. Deregulation, competition and liberalization have brought out the very best in terms of behaviors and competitive response. We’re efficient, we’re focused on returns, and the Irish economy has benefited and the consumer has benefited.”
Kavanagh also believes competition reaps its own rewards. “Competitiveness has fostered demand,” he said. “We see a higher propensity to travel than in most other nations and that’s because we’ve created an opportunity for competitive airfares.
“We are one of the two largest Irish airlines, but there are others and the aviation eco-system, including airlines, lessors, MROs and travel technologists, has prospered because it’s been open to competition. To remain relevant, we have to remain competitive and everyone has reaped the benefits.”
IATA DG & CEO Tony Tyler told the Executive Report, “the Irish government has taken a very pro-aviation strategy for some years now,” pointing out that the country reduced its departure tax to zero in 2014. With the growth and planned second runway at Dublin Airport, there are “clearly signs that the tax policy is bearing fruit and near neighbours should take note,” Tyler said.
Irish Transport Minister Shane Ross is scheduled to speak during the AGM’s opening sessions on Thursday morning.