The Government is committed to saving Aer Lingus only on the basis that it is a viable company, the Taoiseach, Mr Ahern, told the Dβil. "That is the issue. What is involved is a viability plan to save the company. Hopefully, we can do that; it is our priority.
"The Minister for Public Enterprise (Ms O'Rourke) will be working urgently with all the parties in an effort to ensure that (we) will have an airline, however altered in the future, that protects the maximum number of sustainable jobs. We will help in whatever way we can, within the rules."
The Fine Gael leader, Mr Michael Noonan, said one of the reasons the Nice Treaty referendum was not passed was because of the perceived remoteness of the European Commission from the day-to-day concerns of ordinary people. "If the EU Commission forces the closure of Aer Lingus by application of the European policy, and leaves 3,000 to 3,500 workers without redundancy payments, the Taoiseach's prospects - or anybody else's - of putting the Nice Treaty successfully to the people will be substantially diminished." Mr Ahern said the Minister would reject any policy change.
Mr Ahern and Ms O'Rourke stressed that Government policy on Shannon remained unchanged. The Minister said it should be obvious that a viable future for Shannon was dependant on the survival of Aer Lingus. Ms O'Rourke said she would be working with all parties, including representatives of Aer Lingus employees, to ensure there was a fundamentally restructured airline going forward. She added the survival of the company was at stake.
"The chairman believes that there is a need for a reduction of 2,500 people in the workforce. I very much regret that this should be necessary."
When the Fine Gael spokesman on public enterprise, Mr Jim Higgins, said the job losses would represent the kiss of death for the company, the Minister said: "It is the kiss of death if we do not proceed with restructuring. There is nothing surer than that fact."
She added that a key aim was to protect the maximum number of sustainable jobs. "That means taking action to ensure that we will have an airline, fundamentally restructured, which will have a basis from which to grow in the future when markets improve.
"In relation to State aid, I already outlined on October 4th last that I have had discussions on the current difficulties in the aviation sector with the European Transport Commissioner and my Belgian counterpart who is currently president of the transport council.
"The financial state of the European airlines, and the question of compensation as a result of the events of September 11th, will be discussed at the next transport council meeting next Tuesday. At that meeting, I will be seeking to ensure that, at a minimum, European airlines are not disadvantaged in relation to their US competitors."
"I will also be speaking with the French Transport Minister, Jean Claude Gayssot, in Dublin on Friday. I have already spoken by telephone with him concerning the issue."
Ms O'Rourke said the US responded quickly to the serious difficulties of its airlines and significant amounts of assistance had already been paid out. In the case of one airline, Delta, a competitor of Aer Lingus on the transatlantic line, aid amounted to almost US$327 million.
She would be calling, she said, for an urgent response to address the European airline industry's difficulties in exceptional circumstances, taking into account the need for a level playing field on transatlantic routes. She would take into consideration the plan submitted by Aer Lingus, the strategic interests of the State as well as the issues of fair competition.
The Minister said she would also point out that the transatlantic aviation market was proportionately more vital to the Irish economy than it was to the economy of any other EU member state.
She said she would point out that Ireland ranked seventh among the 15 EU countries in terms of passengers carried on direct routes to the US; that Aer Lingus accounted for 70 per cent of that direct Ireland-US traffic; and that transatlantic routes accounted for up to 60 per cent of Aer Lingus profits.
