American Airlines is to announce plans to enter the Irish market next year with daily flights between Dublin and Chicago and Shannon and Boston, providing a direct challenge to Aer Lingus, reports Arthur Beesley
The new flights will also give an additional boost to Shannon Airport, only days after Ryanair said it planned nine routes from a new hub there next year.
American is understood to be preparing an announcement about the new Irish services as early as next Monday. The services will begin in May 2005 and are likely to operate throughout the year.
American is presently cutting capacity on its pressured domestic market to concentrate on international services.
Confirmation of its interest in the Irish market came after recent suggestions from the Minister for Tourism, Mr O'Donoghue, that the Government was "poised to attract major US airlines into Ireland".
Mr O'Donoghue travelled to the US mid-west in October on a tourism promotion visit with the chief executive of Tourism Ireland, Mr Paul O'Toole.
American has indicated in the past month that it was examining Irish services as part of a wider study of route options between the north-east US and other west European cities.
Having concluded that it can profitably enter the Irish market, reliable sources now say the airline has initiated advanced preparations for the services.
The routes have the potential to boost the number of tourists travelling here from the high-spending US market.
It is also likely to create downward price pressure on flights from Ireland to the United States at a time when the weak dollar makes that market attractive to Irish tourists.
American has made light of any potential tension with Aer Lingus, with whom it also has a "code share" agreement. However, the arrival of the new competition comes at a time of huge uncertainty for Aer Lingus.
The State airline is awaiting a Government decision on privatisation following the recent resignation of its chief executive, Mr Willie Walsh, and two of his senior colleagues.
As Aer Lingus embarked this week on the task of replacing its top management team, the Government continued its efforts to find a new permanent chairperson for the airline.
Mr John Sharman was appointed interim chairman last summer after the departure of the former AIB chief executive, Mr Tom Mulcahy.
Mr Sharman is due to stand down before the end of this month. At least three senior business figures have so far turned down the chairmanship since he took the job.
