This article is from page 16 of the 2011-10-25 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 16 JPG
WORLDWIDE business consultants Booz & Company have now emerged as major players in shaping Shannon’s future – their findings and recommendations to government will be key to whether a blueprint to semi-privatise the airport for between 15 and 35 years becomes a reality.
This radical plan is contained in the proposal put to government by the Shannon Airport Authority (SAA) in August.
The SAA board, which is chaired by local businessman Brian O’Connell, tabled its vision for the future on foot of a request for submissions by Minister Varadkar on the break-up of the three state- owned airports – Dublin, Shannon and Cork.
The plan sets out in bold terms that going forward, profit is the bottom line for Shannon, with semiprivatisation option put forward as a way of achieving this objective in the changed economic landscape.
“It is not sustainable for any business to continue in a loss-making mode,” said SAA chairman Brian O’Connell after the proposal was submitted to the Department of Transport.
“Every business, including Shannon Airport, must re-configure itself and re-engineer its future in the light of the dramatically changed economic landscape. It is clear that the ways and means we have organised and managed business in the past have to change, to take into account the reality of present and future market challenges.
“As a board, we are very mindful that Shannon Airport is and should continue to be a powerful driver of the current and future economic vitality in the whole west of Ireland region, if it is adequately capitalised and superbly managed.
“We considered a wide range of options which could optimise and maximise the commercial potential of Shannon Airport. We analysed present international trends and examined locations similar to Shannon around the world, which are operating successfully. It is for the Minister to consider the views of the board as submitted and to deliberate thereafter,” added O’Connell, who is also managing director of Westpark Shannon.
In July, the publication of the DAA annual report revealed a 37 per cent decrease in passenger traffic at Shannon during 2010, contributing to losses at the airport of between € 7m and € 10m for the year. The extent of these losses is believed to have scuppered any prospect of a government move to separate Dublin, Shannon and Cork airports.
This is despite the DAA annual report has saying: “following restructuring, Cork Airport Authority and Shannon Airport Authority will act as fully independent and legally autonomous airport authorities for Cork and Shannon airports respectively.”
In 2003, the then Minister for Transport, Seamus Brennan, announced the Government’s intention to restructure State-run airports, with the 2004 State Airports Act proposing that the Dublin Airport Authority would cease to own Shannon and Cork airports.
However, four years later, Minister Brennan’s successor in the transport portfolio, Noel Dempsey, announced the deferral until 2011 of a decision on the restructuring given the very difficult circumstances in the aviation sector.
“It was the unanimous views of the Dublin, Cork and Shannon airport authorities at the time that given the very difficult circumstance for the aviation sector, the climate was not right for separation,” Minister Varadkar has revealed this week.