Aer Lingus calls for greater US access

Aer Lingus would fly to up to 16 new US destinations if the rules governing transatlantic air travel could be changed to permit such expansion, the company's chief executive, Mr Willie Walsh, said yesterday.

Mr Walsh told an audience at the IMI Management Conference in Killarney that there was enormous potential for Aer Lingus in the development of additional "US gateways" such as San Francisco, Seattle, St Louis and Denver. He said he hoped such growth would be possible within about three years, adding that it would allow the airline to double its annual transatlantic passenger numbers to two million.

US growth of this scale would require investment in new aircraft and front-line staff, Mr Walsh said, adding that raising equity from external sources would be one way of achieving the goal. He restated a reluctance to consider a flotation amid prevailing market conditions, however.

Under the existing US/Ireland Bilateral Agreement, Aer Lingus is restricted to servicing New York, Boston, Chicago and Los Angeles, while a special agreement allows flights to Baltimore. US airlines, by contrast, are free to offer services to the Republic from any American location.

Mr Walsh said the opening of new US routes was a "far more significant" element of the current bilateral agreement thathe continuation of the Shannon stopover, which has traditionally attracted more attention.

"Aer Lingus will open a number of additional gateways in the US if the situation with the bilateral changes," said Mr Walsh, adding that the company had identified 16 suitable destinations for new routes.

He acknowledged, however, that if the US government were to allow greater access to Irish airlines, it would be likely to push for the dismantling of the Shannon stopover as part of negotiations.

Mr Walsh said Shannon was "very significant" for business and pleasure travellers in the transatlantic market but described the stopover as "a barrier to expansion".

Mr Walsh said that new US routes would probably be spread between Shannon and Dublin, adding that significant upgrading of existing airport facilities would be required before extra passengers and planes could be accommodated.

Mr Walsh is confident that a second terminal at Dublin Airport is a "credible" option, expressing a personal preference for the McEvaddy brothers' proposal. Aer Rianta should be prepared to "embrace competition", Mr Walsh added.