This article is from page 3 of the 2006-02-14 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 3 JPG
THE development of new facilities at Dublin and Cork Airports will pose a significant threat to business at Shannon in the coming years as competition for airline services into Ireland intensifies, the Chairman of the Shannon Airport Authority has warned.
Pat Shanahan was speaking following the Authority’s monthly board meeting on Friday, when he also said, “Costs per passenger at Shannon, are significantly higher than at Dublin and Cork airports. It is vital that our cost base is at least equal to our peer airports so that Shannon can attract the business that its tourism and catchment area can generate.”
While welcoming record-breaking passenger numbers of 3.3 million and improved profit levels in 2005, Mr Shanahan further cautioned that, “The outlook for the airport remains uncertain until its underlying financial difficulties are addressed.
“The turnaround in the airport’s finances in 2005 can be attributed to the increased activity by Ryanair since establishing Shannon as a base, and also to the high levels of military traffic operating through Shannon, which is unpredictable and, from past experience, unlikely to continue at current levels.”
Following the best year ever for transatlantic traffic at Shannon, in terms of passenger numbers, “Open Skies” will be introduced in April 2008, with transitional arrangements commencing as early as November this year. According to Mr Shanahan, “During this transitional period, Shannon will be working hard to grow its transatlantic passengers.”
Speaking about controversial plans by the SAA to divest itself of its catering operation Mr Shanahan said, “Shannon is the only major airport in Europe to operate its own catering company. The airport no longer has the critical mass or buying power to compete successfully in this market.”
Commenting on the Programme for Commercial Viability being proposed by Dublin Airport Authority (DAA), Mr. Shanahan said, “DAA is willing to provide financial support to Shannon to implement its restructuring programme.
“I wish to emphasise that there is a limited window of opportunity in which to make these changes,” he said.