The Government narrowly avoided an embarrassing defeat yesterday when it faced down Opposition demands that it use its Aer Lingus shareholding to have the Shannon-Heathrow route restored.
Three divisions on the issue, forced by the Opposition, were each won by the Government by 68 votes to 67. The divisions centred on the Government's motion, expressing disappointment with the decision but approving its commitment to regional development, and the Opposition amendments that it use its shareholding to have the decision reversed.
Fianna Fáil TDs from the mid-west, who were challenged by the Opposition on the issue, voted with the Government.
Minister for Transport Noel Dempsey said that the Government had received legal advice which said that shareholders did not have the power to overrule management decisions on business matters.
"In effect, this means that even if the Government on its own, or in a combination with other shareholders, called an egm and voted for the restoration of this link, management of Aer Lingus is not obliged to follow any directions from the shareholders regarding business matters or to obey any resolution regarding such matters."
Mr Dempsey said it was nonsense to suggest that the Government should not have privatised the company. "If that decision was not taken by the Government, I have no doubt that in two or three years this House would be debating the survival of Aer Lingus in a globalised and increasingly competitive aviation market."
Pat Breen (FG, Clare) accused the Government of putting every obstacle in the way of dealing with the issue. "On August 7th last, the skies fell on Shannon. The west of Ireland's bridge to the world was taken away in a callous fashion."
Aer Lingus, said Mr Breen, had claimed that it had taken the decision on a commercial basis.
"And Minister, you and this Government, as a major shareholder, should be concerned. Dermot Mannion said that the Belfast route would be profitable from the start, but then again Dermot Mannion also said that the Dublin-Dubai route would be profitable, and now we hear that this service is to terminate," Mr Breen said.
"Already we see that pre-bookings for the Belfast routes show they have only sold 175 seats for the month of January out of Belfast compared to Ryanair selling 1,100 seats out of Belfast City Airport to Stansted for the same period."
Jan O'Sullivan (Labour, Limerick East) said the Government's extreme disappointment was of no use to people. "I have never heard such a mealy-mouthed, hypocritical, hand-wringing abdication of responsibility. The buck stops with the Minister."
Timmy Dooley (FF, Clare) said that the termination of the Shannon-Heathrow service had serious implications and would have a significant impact on tourism, business and other commercial activity in the region.
"Aer Lingus has followed an agenda often associated with east-coast thinking, where the notion is of one central hub in Ireland with other airports acting on a spoke off it. That is unacceptable to any of us, especially those of us representing the west and mid-west."
John Cregan (FF, Limerick West) said that Aer Lingus had dealt a devastating blow to the midwest region. "As a region, we were playing in the premiership, but following the blow dealt by Aer Lingus we are now in division one."
