THE Shannon Airport Authority (SAA) is set to lose control of Aer Rianta International in the proposed break-up of the three state airport infrastructure, according to the Chairman of the Dublin Airport Authority.
Gary McGann told an Oireachtas committee that the indications were that Aer Rianta International would “move towards Dublin rather than Shannon.”
“Logic dictates that regardless of what developments take place in regard to Aer Rianta International, its business should not be threatened. There is a general view that it might struggle to survive under the ownership of a separate Shannon Airport Authority, which will not enjoy the same resources as its Dublin counterpart. This discussion is ongoing and has not been finalised because it is part of the final separation discussions.”
Mr McGann said that the viability of Shannon Airport depended predominantly on addressing the cost base and that had been a very difficult and tortuous process over the past year.
“The case is before the Labour Court, which is trying to bring the two sides together. It requires significant cost take-out.
“We have put in place and made available a fairly substantial voluntary severance programme to try to move that forward, especially for people who may want to retire early. Once we have agreed solutions for Cork and Shannon, we will assess the viability of the development plan for Dublin Airport.”
“Issues in regard to Cork and Shannon must be resolved before we can finalise the plan for Dublin. We will then be in a position to submit the three viability plans, which are interconnected. We are working towards this end, but I understand it is frustrating for everybody that we are not there yet. Notwithstanding the many claims on its scarce capital resources, the Dublin Airport Authority has been prepared to support a restructuring programme at Shannon Airport with a generous voluntary severance package,” he said.