The Government's attempts to buy two new jets will begin within days and the Department of Defence will be under pressure to have them in service by the end of the year.
Last night, the Government insisted that it would be buying a new jet to replace the existing Gulfstream IV, although the latter will remain in service for some of Ireland's six-month-long European Union presidency, which begins in January. However, it could take weeks to decide on the specifications of the replacement for the Gulfstream IV, while EU tender rules mean that advertisements will have to run for 52 days.
The current favourite to replace the Gulfstream IV is the Boeing Business Jet (BBJ), which uses the frame of the Boeing 737. This aircraft can fly for up to 14 hours and carries up to 50 passengers.
Rejecting a wave of Opposition attacks yesterday, the Taoiseach, Mr Ahern, said that now was the right time to buy a new aircraft because the global economic downturn meant that there were "thousands of aircraft on the ground".
Industry sources agreed with this assessment last night. But the Government's tight timetable means that it must attempt to buy an aircraft which is already on order but no longer wanted by another purchaser.
The basic purchase price of a BBJ is $40/$45 million, along with a further $5 million to fit it out. An Airbus A320 could be bought for approximately $40 million, inclusive of fitting-out costs.
Most corporate jet manufacturers have laid off thousands of workers recently and have cut back sharply on production. Gulfstream lost $30 million when it sold 21 second-hand aircraft in the last three months of 2002.
However, industry sources warn that the Government must first decide on the role it wants the Gulfstream IV's replacement to perform. One source said: "They could go for an aircraft which could also act as a troop transport since we have troops on UN duties."
Plans to buy a smaller 7/9-seat jet to replace the Air Corps's 15-year-old Beechcraft Kingair turboprop have advanced little since the Cabinet decided to go ahead with the purchase after the last election. Tenders for the contract to supply the aircraft were advertised in November and were received last month, although the Department of Defence will have to act quickly since prices quoted in tenders lapse after three months.
During bitter exchanges on RTÉ's Morning Ireland programme yesterday, the Minister for Defence, Mr Smith, insisted that the replacements for the Gulfstream IV and Beechcraft would cost less than €50 million.
The Gulfstream IV will be kept for at least some of the EU presidency, although it will be sold off if an acceptable offer is made, the Department of Defence said yesterday.
In the Dáil, Mr Ahern said that the Government had not yet decided whether the new jets would be bought outright, leased, or acquired under a lease/purchase arrangement, as occurred with the Gulfstream IV.
However, the Fine Gael leader, Mr Enda Kenny, said that the Government was planning to buy new aircraft while the public had to cope with "rat-infested schools" and a shortage of hospital beds.
"Perhaps the Taoiseach thinks that was worth it, because he and the Government can forget about betraying the people while sitting in leather-lined seats and gilded jacuzzis at 30,000 feet," Mr Kenny commented.
