Independence for Shannon Airport may not go ahead

Wednesday, 07 January 2009

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Pat Flynn

TRANSPORT Minister Noel Dempsey has made the clearest indication yet that the separation of the three state airports announced four years ago, will be postponed and will not go ahead as originally intended.
Minster Dempsey said he is awaiting a report from the Dublin Airport Authority (DAA) and that he will be in a position to make a decision in three or four weeks. He added that circumstances had changed significantly since the decision was first made.
Under the 2004 State Airports Act, which came into effect in October 2004, the DAA assumed responsibility for all assets, liabilities and contracts of the former Aer Rianta. Separate authorities were then established at Shannon and Cork airports.
It was intended that the Shannon and Cork airport authorities would have the relevant airport assets vested in them and that they would assume full responsibility for the management, development and operation of their respective airports. The board of the DAA has already transferred significant day-to-day operational responsibility to the Shannon and Cork boards but both airports are still governed by the DAA.
Minister Dempsey said it was always envisaged that the separation of the three airports would be dealt with at the one time. In Cork, there had been difficulties bringing in full membership of the board and that was delayed from some time. The Cork board is now in place and they will met on Thursday and are communicating with the DAA.
“The DAA will now complete their report to me and based on that, the Government will be able to make a decision which I expect to be made in the next three or four of weeks.
“One of the other things I would say is that from the time that this decision was made, huge changes have taken place economically and in the aviation industry and that obviously has to be reflected in the decision that is made. Whatever format we finish with on this, we must ensure we have three strong airports which are able to compete and compete well and that the boards in each place make the decisions relevant to their own particular circumstances.”
This statement is being seen by many as the clearest indication yet that the break-up of the airports will not now go ahead, at least in the manner originally intended.
Shannon councillor Patricia McCarthy said that if the break-up didn’t proceed as originally announced it would be important that Shannon be given a degree of flexibility, autonomy and access to finance to promote and develop routes and infrastructure critical for its continuing viability.
Ryanair boss Michael O’Leary had already predicted that the Government will not go ahead with the full separation of Dublin, Cork and Shannon.
Last August, he said “what is on the table now is radically different to the original idea proposed by former Transport Minister Seamus Brennan five years ago.”
He said he also believes there are question marks over the viability of Cork and Shannon as standalone airports, as Dublin is retaining the bulk of the wealth of the former group.

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