This article is from page 6 of the 2012-12-04 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 6 JPG
SHANNON hasn’t been unfairly treated by the Government in a deal that will see its debts of € 100m cleared in return to saying goodbye to Aer Rianta International (ARI) that was established at the Clare airport and has made profits in excess of € 200m over the past decade.
In defending this trade-off that has been lambasted by both Fianna Fáil and former ARI executives in the mid-west, Minister for Transport Leo Varadkar confirmed that ARI would become the sole property of the Dublin Airport Authority (DAA) post the December 31 independence of Shannon.
“It is important to bear in mind that ARI started in Shannon,” admitted Minister Varadkar, “but the contribution that has been made over the years has been much more than Shannon. It has been financed from all over the (DAA) group. The requirement of the new legislation is that both new entities – Shannon as a separated airport and the DAA – have to be vi- able. It wouldn’t be possible to write down the debt at Shannon – it’s not being written down, it’s being carried by Dublin and Cork. It’s passengers using Dublin that will pay off Shannon’s debt. Grant that concession and also ARI would not be possible,” added Minister Varadkar.
Fianna Fáil transport spokesperson Timmy Dooley has blasted this move, saying ARI had to “form part of the new Shannon entity”, which would “secure the airport’s future and provide a marketing budget that can be used to attract more tourists and open new air routes for the benefit of the mid-west region”.
Responding to this criticism, Minister Varadkar said, “ARI has considerable investment costs around the world over the next couple of years – € 60m over the next couple of years – and that money can be borrowing against the DAA’s balance sheet and the DAA’s assets.
“We didn’t want the new Shannon to have to go off and borrow a whole load of money to build perfume shops in the Ukraine and places like that,” he added.