Taoiseach Bertie Ahern indicated that the Shannon-Heathrow route may never be restored.
He said the Government was assisting the Shannon Airport Authority in a range of discussions, but no company was involved. "I do not want to create a grey area on whether we are about to sign up, because we are not.
"We will do our best to ensure we sign up somebody but it may not be possible." Mr Ahern insisted that the interests of business organisations in the area related to connectivity from London to other destinations.
"It is not about getting to London as there are flights to Luton, Gatwick and Stansted. Ryanair has announced its intention to increase its daily flight numbers so there are seven flights per day from Shannon to London."
Labour leader Eamon Gilmore said it was quite clear from the Taoiseach's reply that the Shannon-Heathrow service was dead.
"I interpret the Taoiseach's response to mean that connectivity and not Heathrow is the issue, that the Government is now no longer actively pursuing a service from Shannon to Heathrow."
He said the Taoiseach had indicated that "you can go to Gatwick and Stansted and if you want to go to Disneyland they will provide a service to Orlando". However, there would be no service for those who wanted to do business through Heathrow.
Pressed by Mr Gilmore and Fine Gael leader Enda Kenny on the Government's intention to appoint two extra Aer Lingus board members, the Taoiseach said their earlier appointment would not have made any difference. Mr Kenny said there had been "much waffle" from the Government on the consequences of Aer Lingus's decision to move its Heathrow slots from Shannon to Belfast. "If Aer Lingus does not submit a request for Shannon-Heathrow slots by Friday, to be approved at a conference in Toronto sometime in mid-November, then the decision stands."
The Government, said Mr Kenny, retained a shareholding of 25.4 per cent in Aer Lingus for a particular purpose that the Taoiseach had identified as defending strategic interests of the country.
"Those strategic interests were identified as Shannon-Heathrow, Cork-Heathrow and Dublin-Heathrow." Mr Ahern said that a commercial decision had been made by Aer Lingus and the company had reiterated that it would not change the decision.
"The Government is conscious that this will create difficulties for the region and several members have met all the relevant organisations in Shannon.
"As the deputy knows, the senior officials group has put forward a programme, on which we are working, to address the obvious implications for Shannon, and the Government admits there are implications."
Mr Ahern added that the implications had, perhaps, at times, been broadened out in a way with which the Government did not agree, but there were negative aspects for tourism and business people wishing to travel.
The Government would endeavour to do all it could to ensure connectivity for the business people in Shannon.
"The commercial decision, however, has been made and while protections are afforded to the Government by its shareholding, those protections do not extend to its forcing Aer Lingus to make a decision it believes is not in its interest."
Asked about the dispute between Aer Lingus and pilots, Mr Ahern said he had urged both sides to co-operate with each other as it was in their own strategic interests.
