This article is from page 9 of the 2012-04-03 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 9 JPG
THE Dublin Airport Authority siphoned off the profits of the Shannon Airport inspired and headquartered Aer Rianta International (ARI) for a generation in a move that has been described as “an absolute scandal” and a major contributory factor to the current ills of Clare’s international airport.
This claim was sounded out by former ARI executive Michael Hanrahan on Friday, as he highlighted the local case for profits from the multinational arm of the Dublin Airport Authority to be channelled into Shannon.
“Everyone thinks that Shannon is losing money, but I have a different view. Shannon is making a considerable amount on money, particularly through Aer Rianta International,” said Mr Hanrahan.
“Aer Rianta International started in May 1988 – we had an initial capital of € 1.2m and that came from the surpluses of Shannon through the ‘80s. Minister Varadkar indicated that this money came from Dublin – it came from Shannon,” he added before he rounded on the DAA highjacking of the ARI brand.
“The concept that Shannon owes € 100m is to me an absolute scandal,” he blasted. “Aer Rianta International invested in Birmingham Airport and that investment was £30m sterling. That came from the surpluses of Aer Rianta International. The DAA disposed of the investment Birmingham and made a profit of € 270m.
“That went into the monstrosity they have built in Dublin Airport. All the surpluses of Aer Rianta International have gone to Dublin from the very outset. That’s about € 560m to date.
“The DAA have taken all the surpluses that they have made from profits they made on the hotels. I believe they made € 260 or € 270m from the sale of the Great Southern Hotel Group.
“Why should be Aer Rianta International be based in Dublin. The chief executive of Aer Rianta International was based in Shannon for 23 years and all of a sudden the chief executive is now based in Dublin, together with the head of finance. Shannon is just being denuded,” he added.
In response, Minister Varadkar warned Mr Hanrahan not to “forget the accumulated losses that Shannon have made in the last 15 years and what they add up to.
“You have to ask yourself what profits, when it was making profits, would Shannon have made if the Government passed a law forcing people who didn’t want to land here, to land here. If there wasn’t a law forcing people to land here the acculumated losses would be enormous, much more enormous than they are now,” he added.