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Dáil Éireann díospóireacht -
Tuesday, 14 May 1996

Vol. 465 No. 3

Written Answers. - Aer Lingus/Delta Airlines Alliance.

Seán Haughey

Ceist:

242 Mr. Haughey asked the Minister for Transport, Energy and Communications if he will give details of the proposed alliance between Aer Lingus and Delta Airlines; and if he will make a statement on the matter. [9648/96]

Ivor Callely

Ceist:

244 Mr. Callely asked the Minister for Transport, Energy and Communications the sanction or Government approval that has been given to the new working arrangements between Aer Lingus and Delta Airlines; and if he will make a statement on the matter. [9716/96]

I propose to take Questions Nos. 242 and 244 together.

I have gone on record before to indicate that the Government has encouraged and will continue to encourage Aer Lingus to develop appropriate strategic alliances with other airlines as part of its overall development strategy, where they are judged to be in the best interests of the airline and the economic development of the country as a whole.

The recent agreement between Aer Lingus and Delta whereby Aer Lingus have joined Delta Airline's "Worldwide Partners" programme is not an equity based agreement. It is more in the nature of a co-operative marketing arrangement and is in line with Aer Lingus transatlantic strategy which seeks to ensure a strong year round service for business and leisure passengers on a commercially viable basis.
The main elements of the agreement are: Delta will block book seats on the daily Aer Lingus Dublin-New York and Shannon-New York services in both directions; these flights will operate as code-sharing flights i.e. each flight will be shown separately as a Delta and an Aer Lingus flight on reservations systems; Delta will code-share from beyond points in the US which they serve i.e. 246 cities; joint co-operations on frequent flyer/Tab programmes and further discussions to share certain services e.g. handling, maintenance etc. are ongoing.
While the issue of code-sharing between Irish and US carriers on Ireland-US services is not specifically addressed by the Ireland_US bilateral Air Services Agreement, the Delta/Aer Lingus arrangement has been approved by both the Irish and US authorities on the basis of comity and reciprocity. I believe that the nature of the agreement is consistent with the aims of the bilateral Air Transport Agreement and with Irish aviation policy generally. The new agreement will have benefits for both airlines and consumers. From an Aer Lingus perspective the agreement will serve to underpin the year round viability of its transatlantic services in the coming years, will give access to Delta's US-wide network and marketing infrastructure and offer further potential financial benefits through sharing of services.
The Deputy will appreciate that the detail of such an alliance between specific air carriers is commercially sensitive by its nature and it would be inappropriate for me to comment on such detail. In approving this type of alliance, my main consideration relates to the broad strategic and regulatory issues. It is neither necessary or appropriate for me or my Department to involve ourselves in the detailed working arrangements between the two airlines.
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