Following the announcement by Aer Lingus to cut US winter services in Shannon, IBEC Director for the Mid-West Chris O’Donovan stated, “The decision to withdraw services between Shannon to Chicago is disappointing.”

Aer Lingus is cutting flights in Shannon, Belfast and Dublin this winter as it attempts to cope with the economic downturn and a fall in passengers, citing the travel tax introduced in last October’s Budget as a significant factor.

Mr O’Donovan continued, “The government’s air travel tax should be immediately re-examined in light of the negative effect it is having on the airline and tourism industries.”

“This year aviation industry losses are expected to exceed $9 billion globally. Faced with reduced passenger numbers and rising fuel prices, airlines across the world are continuing to decrease capacity to match falling demand. Irish carriers are not insulated from these major problems and this is leading to a review of the services they offer.

“The Irish Government must act to ease the cost burden on Irish airlines and promote essential connectivity to global destinations. The recently introduced Air Travel Tax should be immediately re-examined.

“With passenger numbers falling and the tourism sector being hit hard, it is questionable whether the Air Travel Tax is bringing any net benefit to the exchequer. The Department of Finance should undertake a detailed cost-benefit analysis of the tax, in light of the dramatic changes in domestic and global economies.”

Commenting on the Mid-West region Mr O’Donovan welcomed the decision by Aer Lingus to increase the frequency of flights on the Shannon to Heathrow route stating, “Shannon Heathrow is a strategically important service for business and tourism across the West of Ireland. Today’s news to increase the flight frequency is welcomed by the business community.”

“The reduction in US services is obviously a concern however; the long-term sustainability of the New York service is now paramount, particularly in light of the decision by Delta to suspend its winter service on the route. The United States is one of the key tourism markets for local businesses and continuing to develop close direct links across the Atlantic at a time when our tourism industry is suffering is critical. The region’s existing direct air services and tourism and business products including the US Customs pre-clearance facilities at Shannon Airport due to come on stream later this year must be effectively marketed and promoted.”

“Our priority now must be to actively pursue a defined marketing strategy to encourage people to visit the region,” he added.