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SWEDISH AIRLINE SAS announced this week that it has applied for an Irish air operator certificate, or AOC.
That means it will set up a management team and register planes here.
Those Irish-registered jets will be based in London and Spain for use on “a small number of departures to complement existing services” that SAS operates, according to a statement on the airline’s website.
Of course, SAS won’t be the first foreign airline to apply for an AOC in Ireland – its Scandi rival, Norwegian Air, was granted a certificate for its subsidiary in Dublin three years ago.
SAS is following Norwegian’s flight path so it can “reduce the cost differential to newly established competitors” - a clear message that it wants to up its game against its ‘low-cost’ competitor.
So, how exactly would having an Irish licence help the overseas carrier drive down costs? Let’s look at why foreign airlines are queuing to set up offices in Ireland.
What is an AOC?
A company that operates commercial flights is required by law to hold a valid AOC from any national aviation authority.
In Ireland’s case, the IAA is responsible for registering civil aircraft and approving AOCs.
In a nutshell, the certificate means that the airline operates under the regulations in the chosen jurisdiction. The company is granted the protection of that country’s aviation agreements.
For SAS, having an Irish AOC means it plays by labour laws here, which are comparatively favourable to employers than the much stricter rules in Sweden.
SAS has made no secret about this. It said it will hire staff locally. In a statement to several news outlets, spokesman Fredrik Hendriksson said that the cost advantage of an Irish AOC would come from having lower social security expenses and taxes.
It’s interesting that one of the main objections to granting Norwegian’s Irish subsidiary access to the US market was over fears that Ireland was being used to skirt labour laws.
Bilateral agreements
A key selling point of an Irish AOC is that it grants airlines access to the clatter of bilateral agreements Ireland has struck up with other regions around the globe.
Many of the treaties Ireland signed with other countries date back to the days when Shannon Airport was a compulsory refueling stopover for airlines operating long-haul routes.
A historical accident caused by our barrage of bilateral deals is that Ireland is more favourable to airlines in terms of tax law, accountancy rules and on a bureaucratic level.
For example, Ireland offers a tax depreciation on aircraft of 12.5% per year over an eight-year period. That can be used to reduce the amount of taxable income reported by a business.
Our national bilateral agreements became less important in recent years, especially after the EU-US open skies agreement was signed, which made it easier for carriers to fly between Europe and the US.
They’re becoming an attractive asset again with Britain set to exit the EU. There’s a good chance you’ll hear more about Ireland’s AOC as airlines move UK-registered jets to maintain access to the EU travel zone.
History
The noble story of Ireland’s great aviators – like leasing legend Tony Ryan, who went on to co-found Ryanair, one of the country’s most successful companies – certainly helps Ireland live up to its reputation as a ‘centre of excellence’ in the air travel business.
But the story alone isn’t exactly a deal breaker when it comes to making boardroom decisions. It’s more significant that our long history of flight means we know how to ‘talk aviation’.
Regulation agencies here are more familiar with how the industry works because it is so big: aviation contributes an estimated €4 billion to our economy, according to the IAA, and roughly half of the world’s aircraft are owned by Irish-based leasing companies.
We have developed a culture of aviation and we understand the requirements of an business in the industry.
Anywhere there’s a meeting of airline bigwigs putting together a business plan, there’s a good chance an Irish person is sitting somewhere at the boardroom table.
Written by Conor McMahon and posted on Fora.ie
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It would also be good if the government overhauled how it’s taught in our schools so people could learn how to speak it properly.
@johnbunton: Too right! Irish should be taught the same way as French or German, for example. Prose and poetry should be made optional for those who want to do it and these should be done in separate classes. Knowledge of the language should be prioritised first and foremost.
@johnbunton: it has been. 40% oral.
@Ken Loughman: I’m a fluent speaker and got top marks in LC Irish and I completely agree. Seperate language and literature papers, leave language as compulsory and have literature as an option. It’s hardly fair to those who struggle (either with languages in general or specifically with Irish) to be expected to have an in depth knowledge of the poems, plays etc if they’re finding it hard to grasp the actual language itself. Plus it’ll also benefit those who do have strong Irish as they’ll have another optional subject they can be confident in.
@Frainc Ó Broin: it’s still not enough in my opinion. Students all across Europe students are fluent in at least two languages. We start learning Irish at the age of 5 and stop at age of 17 or 18 and most people still don’t have a clue outside the set oral spiel we all have to give. There’s something very wrong with the system when you could get an A or B in higher level Irish and not be a fluent speaker at the end of it.
@Ebony: I based my comment on my own experience in secondary school. While I enjoyed learning the grammar I hated the prose and poetry. It serves absolutely no purpose for everyday situations in the 21st Century.
I should add that one of my great-grandmothers from Mayo was a native speaker and my Dad was fluent when he was younger. I regret not being fluent myself considering those connections to the language in my family. Still, there’s always Duolingo…
@Ken Loughman: It’s miles better than it was, at least at primary level. At least I think it is. My 7yo regularly comes out with a long mellifluous spiel, most of which I don’t understand.
@Ken Loughman: And how well do most Irish school leavers speak French or German ? Would a monolingual native speaker understand them or vv?
@Gearóid ÓCiaráin: Well, I speak both pretty well. I can guarantee you that school leavers who did French or German have a better chance of being able to use them in everyday situations than they would with Irish. That’s the whole problem with how Irish is being taught.
@johnbunton: it’s not how it’s taught – it’s whether or not people want to learn it – unfortunately most people don’t
@johnbunton: I think it’s also a matter of exposure. Any non-native English speakers who are fluent in English grew up watching the same films and listening to the same music as us – all in English!
@johnbunton: let’s gets teachers that engage with teachers first. My own personal experience is no interaction and Peig.
@Ken Loughman: very true im a fluent irish speaker and definitely the time spent learning poetry etc be better spent actually learning the language u don’t do french poetry or german to learn them
@johnbunton: what’s wrong with a big stick
@Thomas Harrington:I would argue that the way Irish is being taught, i.e. having to do prose and poetry at the same time instead of concentrating on the language itself, is one of the reasons why people don’t want to learn it.
The Clondalkin Irish scene is vibrant thanks in part to great work by those who established Aras Chronain. It’s worth a visit even if all you order is a Pionta, le do thol
Faoi dheireadh Caithfidh muid a bheith dóchasach go dtarlóidh sé mar a deireann siad
@Séan Ó Nuanáin: i hope to at some point be that good at irish like you. Started a course to get myself back to a decent level of irish again as i was quiet good at it in school. It all starts coming back to me the more im at it.
@shellakybooky: maybe you should start learning English first so you can be quite good at Irish.
#PrayForArlene
Irish was a complete waste of time in my secondary school. We did double Irish classes just to pass an exam but never learned how to really speak or understand real Irish
@Stipe Miocic: its sad isn’t it? I could start quoting Irish poetry to you but I haven’t a clue how to go about ordering a meal in a restaurant, buying cinema tickets etc in Irish. these are basic things you learn when you start learning another language so you feel confident speaking it. because of Polish friends who don’t treat me as an inferior species because I can’t speak the language I can speak more Polish than Irish &quite happily use it in Poland/ with Poles
@Stipe Miocic: and the fault lies with?
Arlene, will choke on her cornflakes.
Welcome to the the 21st century, where personal choice is welcomed, now to LGBT equality/rights
This entire sham is put into perspective when areas such as Clondalkin and Ennis are included.
@Adam Reid: Clondalkin has a thriving Gaelscoil. The area has a deep cultural interest and is steeped in history. The round tower garden was recently renovated and there’s a good buzz about the village. No better place to enthuse people of all ages to get involved in learning, or relearning their native language…. And of course they have Eoin Ó Broin and Lyn Boylan who do Trojan work in and for the area.
@Paul Linehan: Clondalkin has a chip shop; how many residents eat chips there?
@Adam Reid: Clondalkin also has Indian, Pizza and Chinese takeaways…. So I’m going to presume that they have choices!!!
Is fuath liom Gaeilge. D’fhéach fir brónach i gúnaí dubh a ghlac pléisiúr orthu siúd a bhí ag obair go rialta ag daoine nach bhfuaimnigh Éire mar a cheap siad gur chóir é a labhairt.
So what did we need an Irish Language Act for if we can just do this?
Seems almost like someone was trying to be antagonistic, when this could be sorted out in such a more graceful manner.
@alphanautica: Some people may have become addicted to drama, publicity and ‘historic moments’.
@Brendan O’Brien: You mean like the Majority of People in the North?? because thats who want an ILA.
So, incremental progress can be made through common sense.
Surely better than an all-or-nothing stand-off between massive tribal egos.
Do the DUP know this. ??
Proud to be Irish but Irish isn’t good for business……just saying
Stupid language
@Gearoid De Burca: Yes, English is a stupid language with everything backwards in comparison to rich languages like Irish.
@eastsmer: Irish speaking areas are full of people born with a sod of turf in their mouth.
@Gearoid De Burca: from the sounds of things, you were born with a sod of sh**e in yours.
@Gearoid De Burca: Hi Arlene!
@Gearoid De Burca: Coming from a person with an Irish name!
@Gearoid De Burca: Anyone who calls a language, any language, stupid is an ignoramus.
@Gearoid De Burca: you’re not much better obviously…..
@Leadóg: I just called it stupid
@Gearoid De Burca: With a name like yours..???
What planet are you on..
@Gearoid De Burca: At least its Irish turf.
@Gearoid De Burca: bitter that you were sh!te at Irish in school eh, Gerry Burke?
@Laura: You bite… You eat the same shite. So just grin with a wide one and except you’ve improved by at least on the higher intelligence ladder!!!
G
An Ghaeltacht should be a place where ”Native” Gaeilge is spoken or else change it to Gaeltacht Dhúchasach for example. Places like those mentioned in the article above could then use An Ghaeltacht.
Difference according to the article is that it covers only a handful of Gaeltacht areas and doesn’t supply any funding. ILA (I think) covers all areas with majority Irish populations and restores some funding that was previously cut.
have your say