Response by Tánaiste and Minister for Enterprise, Trade and Employment Mary Coughlan, T.D., to Private Notice Questions in Dail Eireann re: Ryanair

Tuesday 16^th February 2010

Following the announcement that SRT were to close their aircraft maintenance operation at Dublin Airport, I asked IDA, with engagement also by Enterprise Ireland, to act as a contact point for any company interested in taking over part of the SRT business or starting a similar business at the airport. Several expressions of interest were received, one of which led to the establishment of a new company, Dublin Aerospace, which is currently setting up a heavy maintenance operation, which will employ about 200 people at the airport when fully operational.

An approach was also received from Ryanair proposing to establish a heavy maintenance operation for its own fleet which would initially employ about 200, perhaps rising to 500 over a number of years. This was a most welcome proposal but there were two complications. Firstly, Ryanair insisted that they would not talk to the Dublin Airport Authority (DAA) which posed a significant obstacle to concluding the agreements necessary to implement the proposal. Secondly, their interest focused entirely on a particular existing facility – Hanger 6 – which was not available as it was being used to provide line maintenance for the Aer Lingus fleet at the airport.

Ryanair’s approach to the Prestwick project was very different to their approach in Dublin. For one thing, they negotiated with the authorities in Prestwick which they will not do in Dublin. For another, they are building a hanger in Prestwick whereas, in Dublin, they are seeking to have a sitting tenant removed from an existing facility to accommodate them.

Nonetheless, I was determined that every effort should be made to secure the project and a protracted engagement and correspondence ensued, involving IDA (who kept me fully briefed at all times), the DAA and Ryanair. This process culminated in a letter from Barry O’Leary, CEO of IDA, to Michael O’Leary which clearly set out the position and which I would like to read into the record of the House:

“Dear Michael,

Further to recent extensive correspondence and discussion between Ryanair and IDA on your proposal to establish aircraft maintenance operations at Dublin Airport, I would like to set out IDA’s current understanding of the situation and to outline the options which exist to take the proposal forward.

The options available would enable Ryanair to establish significant aircraft maintenance operations at Dublin Airport. In the course of examining the scope to bring this about, IDA has had extensive discussion with the Tanaiste and Minister for Enterprise, Trade and Employment, with the Minister for Transport , and with the DAA. All of these , as well as IDA, are fully committed to maximising maintenance employment at the Airport and I very much hope that we can all succeed in working with you to achieve a positive outcome. To this end, the services of IDA and Enterprise Ireland remain available to assist in every way possible.

Hangar 6 continues to be occupied by maintenance operations carried out on Aer Lingus aircraft. Aer Lingus continues to hold legal rights to have its maintenance carried out in this hangar and has indicated that it wishes to continue to avail of this.

However an option exists to replicate these facilities through a new build elsewhere on Airport lands. A number of viable sites exist for such development. IDA remains available to facilitate or, if appropriate, to become involved in developing this option.

Alternatively, subject to a more detailed understanding of your requirements, there may be an option to accommodate your proposal in space remaining available in hangars 1 to 5.

I suggest that we should now immediately meet with your people to take the matter forward and finalise selection of an option to locate your proposal. IDA remains fully available to liaise with DAA and Ryanair to progress the matter. We are of course anxious to expedite the establishment of further maintenance employment at the Airport and we are committed to apply our experience to bring this about, including through direct involvement in the project if that should prove useful.

DAA are willing to engage constructively with any company to create viable maintenance employment at the Airport. Both the Tanaiste and the Minister for Transport have very actively expressed similar sentiments, and both have stressed their availability to continue in any way they can to a successful outcome.

In the circumstances, I think we should all now redouble our efforts on your proposal. We will immediately be in further contact with Michael Hickey to progress matters.

Looking forward to a successful outcome.

Yours sincerely ”

That letter was sent on the 19^th of September 2009. Ryanair did not take up the offer of an immediate meeting to explore the available options but rather, in a reply of 24 September, repeated the demand that the Government require the DAA and/or Aer Lingus to vacate Hanger 6.

I can assure the House that the Government is entirely serious about this project. Ryanair is imposing significant conditions here. One condition, the refusal to talk to the DAA – is difficult, but perhaps not impossible, to meet and I will do everything possible to find a way around this. However, the second condition – that they must have Hanger 6 – is quite simply much more problematical. Hanger 6 is simply not available – it is licensed to Aer Lingus. However, Ryanair can do in Dublin exactly what it is doing in Prestwick – build a hanger at the airport to accommodate a maintenance operation.

I would strongly encourage Michael O’Leary to re-engage in discussions on the available options for establishing a Ryanair maintenance operation at Dublin Airport in the context of his meeting with me later this evening.

As Michael O’Leary appears to accept, there is a wealth of skills available to support such an operation at Dublin Airport and I believe that, with common sense and determination, an arrangement can be arrived at which would be in the interests of both the airline and the people of North Dublin.

ENDS/ETE/2163