Shannon targetting independence

Tuesday, 06 January 2009

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Shannon targetting independence

Wednesday, 27 August 2008 10:45

Shannon Airport could be in line for major changes if the proposals to be submitted to government this week are accepted.

PLANS which would make Shannon Airport independent are to be submitted to the Government within the next few days, it has been confirmed.
The announcement follows a British competition watchdog’s proposal to force British airport authority, BAA to sell off a number of it’s airports to boost competition.
Separation of the three hubs was first proposed by Transport Minister, Séamus Brennan, five years ago but the shock of rising oil prices and the blow that this represented to the aviation industry helped put the plan on the back-boiler.
A spokesman for the DAA said that the authority “has been asked to submit business plans for the three airports to the Department of Transport and this will happen before the end of the month.”
In a break-up situation, Cork Airport would take on €113 million debt from the DAA and will get ownership of the Brooklyn Business Park, valued at between €50 million and €70 million.
The original plan also included a proposal that Shannon would retain ownership of Aer Rianta International, the company’s duty-free operations, which generate substantial amounts of cash every year.
Shannon Airport believes that assets from the sale of the Great Southern Hotels and Aer Rianta’s stakes in Hamburg, Dusseldorf and Birmingham airports should be on the table.
Airport authority board member, Tadgh Kearney, says that the chairmen of the three authorities should have a say in drawing up the overall document.
He believes that even having a dedicated board at Shannon for four years has helped.
“If there had not been a dedicated board, there would have been no strategy to deal with the implication of Open Skies, the loss of the Heathrow/Shannon slots and the restructuring.”
In its announcement last week, the competition authority said that it may force BAA - who operate Stanstead, Gatwick and Heathrow - to sell three of its seven airports, including two in London.
The watchdog’s interim report argues that problems at Heathrow, Gatwick and Stanstead airports are happening as a result of the BAA monopoly.
“There is evidence from a large number of factors, including its (BAA’s) lack of responsiveness to the needs of its airline customers and a lack of initiative in planning capacity,” said Christopher Clarke, chairman of the inquiry.
“This has resulted in investment that is not tailored to the requirements of airport users and lower levels and quality of service for both airlines and passengers.”

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