This article is from page 2 of the 2008-04-15 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 2 JPG
SHANNON Airport will now be in a position to maximise its growth as an independent entity, airport boss, Pat Shanahan has predicted.
The chairman of the Shannon Air- port Authority was speaking after Minister Noel Dempsey’s statement that the airport could run be running its own affairs in less than a year.
The transport minister has said he expects the separation of Dublin, Cork and Shannon airports to be completed within the next nine to 12 eatoyelaatcy
This follows the decision of the board of Cork Airport Authority (CAA) to accept the recommenda- tions of mediator Peter Cassells in
relation to the level of debt it should bear at separation.
The autonomy of the three airports has been held up for five years by the row over who should pay the €220 million debt for Cork.
The Shannon Airport Authority welcomed the announcement that the airports were to split.
“We have general agreement al- ready with the Dublin Airport Au- thority on separation and have put forward a robust and independently validated business case in this re- gard,” Shanahan said.
He predicted that “Shannon Air- port’s maximum potential can only be achieved as an independent com- mercial state enterprise. Even with limited autonomy since Shannon
Airport Authority Board was ap- pointed in September 2004, major progress has been achieved, with traffic growing by 50 per cent and a major restructuring programme be- ing implemented that has achieved cost savings of over €10m per an- num.”
According to Minister Dempsey a process of engagement is underway involving all the relevant parties and dealing with implementation and the technical and legal issues involved.
As part of the process, Minister Dempsey said there would need to be “necessary consultation with stake- holders”.
SIPTU in Cork have opposed the plan which will see Cork saddled with a debt of €113 million but with
assets valued at €220 million. Both Cork and Shannon airports were promised debt-free separation by the Government in 2004. Mr Dempsey yesterday ruled out the possibility of providing financial assistance to the CAA in the future should it run into funding difficulties.
On Thursday evening, a statement from the CAA said it had “sought and received assurances from the minister for transport that an inde- pendent Cork airport can rely on support, financial or otherwise, to ensure the airport’s continued viabil- ity in the event of it being unable to meet its fixed funding obligations as a consequence of the occurrence of certain adverse business risks or ex- traordinary events”.