SHANNON Airport should receive in excess of €300 million on a phased basis over the next 10 or 15 years to ensure its successful transition as an independent airport, a former director has claimed.

The figure is three times the €100m package mooted by Transport Minister Leo Varadkar to leave Shannon Airport without any net debt to survive on its own, without further Government support.
Former Aer Rianta International (ARI) director, Liam Skelly, is campaigning for a return of ARI to Shannon, where it was established and developed into a money-spinning enterprise by Shannon executives.
Mr Skelly believes the retention of ARI by the Dublin Airport Authority (DAA) is wrong and it should be returned to Shannon to sustain its future viability.
If Minister Varadkar refuses to restore ARI to its “rightful place in Shannon”, Mr Skelly believes Shannon is entitled to a proper share of the value of ARI and the disposal of Aer Rianta’s assets.
The Scariff resident estimates this is worth up to €345m, minus the overall figure for major investment in new Shannon facilities by the DAA since 2004, when ARI was transferred from Shannon to Dublin.
A DAA spokesman stated all decisions in relation to the proposed separation of Shannon Airport, and the manner by which such a separation will take place, are a matter for the shareholder.
“The Government has said it plans to establish a steering group to determine the most effective organisational structure for the new Shannon entity and to develop an implementation strategy for the new body. The DAA, therefore, has no further comment to make on these issues at this time.”
The Department of Transport had not responded to queries about Mr Skelly’s claims at the time of going to press.
Mr Skelly’s analysis also places a serious question mark over a statement issued by Minister Varadkar to The Clare Champion last week when he stated, “ARI is probably worth less to Shannon than the removal of the debt”.
He insists Shannon is entitled to keep €165m in ARI profits since 2004, €70m from the sale of the Great Southern Hotel Group, a third of the €30m gained from the sale of Aer Rianta’s share in Hamburg Airport, a third or €100m from the sale of Birmingham Airport and 33% of the value of the remaining stake in Dusseldorf Airport.
Because a greater share of the purchase price for the Great Southern Hotel Group came from Dublin Airport, he believes the DAA should get €120m, while half the remaining €140 million should be divided evenly between Cork and Shannon.
He claims the cost of purchasing a lot of these Aer Rianta assets and not just the profits have to be taken into account.
“The DAA bought nothing. Aer Rianta bought the Great Southern. The DAA didn’t give back the initial cost of investing in the Great Southern Hotels,” he said.
Minister Varadkar has argued that even though ARI was founded in Shannon, it was a State company for the benefit of the three airports.
However, Mr Skelly insists the DAA should get “nothing from ARI”.
“The money Shannon made was for the State. ARI was earmarked to benefit Shannon by Shannon people. If it was for the State, should we give the proceeds to Faranfore or Knock? Why would you give it to Dublin when they don’t need it?
“The DAA have had nothing to do with ARI and I would argue this case in any kind of European court. Dublin Airport are not entitled to ARI and did nothing for it. Dublin Airport should never have started the new terminal.
“If the DAA came up with ARI could we say that Shannon would be entitled to it then? That would be the most amazing thing I would have ever heard.
“Shannon is entitled to all profits. ARI was international from day one. Why didn’t the DAA set up an international company and go to China and other countries that Shannon weren’t involved in? Instead the DAA sat on their laurels and did nothing.
“You can’t split ARI and give parts of it to Cork or Dublin Airport. If you wanted to do that, you should give money to other airports.
“Shannon needs an investment fund that would guarantee the airport money over the long term, such as ARI, to develop new routes and dramatically increase passenger numbers.”
He doesn’t believe Shannon should get all of its share of Aer Rianta and ARI assets in a once-off payment and suggests a long-term strategy of marketing and route support funding on a phased basis would be more prudent.
He stressed it is vital that any money given to Shannon should be spent wisely.
“Unless Shannon is given significant funding for marketing and route support to attract new airlines and increase passenger traffic, it is going nowhere. Shannon will have to get Ryanair or its equivalent to come back into Shannon. A deal could be done to allow them in for free but not to pay them,” Mr Skelly said.

Steering group to examine asset distribution

SHANNON Airport’s share of the disposal of Aer Rianta’s lucrative assets, believed to be worth hundreds of millions of Euro, will be considered by the new airport steering group, according to Minister of State at the Department of Transport, Alan Kelly.
Deputy Kelly has also insisted it is far too early to put a figure on what Government financial support will be provided to safeguard the future of Shannon Airport, as the Government hasn’t made any decision on the matter.
“People have concerns and questions. I am not saying that all the answers have been provided down to the detail people want. That is why the steering group has been set up.
“I will be sitting on the Cabinet sub-committee and I can assure you I will always be looking after the interests of the Mid-West. A decision on that has been made recently by the Cabinet, which I am not privy to.
“The Cabinet sub-committee will also have a bearing on this. I can assure you a number of senior officials in a number of departments, such as transport, enterprise, trade and employment and others will be part of this. Where expertise is required, the Government will not be shy in securing whatever is required.
“There is a steering group put in place to look at this issue and it is not something that is being driven by the DAA,” he said.
Deputy Kelly acknowledged Shannon Airport is the key economic driver for the Mid-West and has a direct impact on the livelihoods of people in his own North Tipperary constituency.
“The plan that has been put in place by the Government is an extremely positive one and is one I have been part of. I have always taken a keen interest in the development of Shannon Airport down through the years.
“It is too early to say what funding will be given to Shannon. Decisions in areas concerning the distribution of the proceeds of Aer Rianta assets have not been dealt with by the Government.
“A new steering group has been put in place to decide how the new entity is going to be created and set up and its overall constitution. I have met some of the airport workers who I know and I have addressed some of their concerns in different forums,” he outlined.
“The issues raised concerning ARI have not been decided by Government. However, the fact that Shannon Airport will be debt free, the fact that it is being set up with a new entity and new mandate with a focus that will have the support of a broader Government strategy in taxation and other methods, I think is an absolutely fantastic opportunity for the area.
“The possibilities for the airport, for Shannon and the Mid-West as a result of this decision is a chance the region can’t afford to question or turn down,” he said.
Former ARI director Liam Skelly has stated it is wrong that the DAA took ARI in the first place and they should not retain it now Shannon Airport is trying to become independent.
“I understand exactly what former executives are saying,” said Deputy Kelly. “I am saying in relation to decisions concerning these issues, they have not been fully taken at this juncture.”
Asked if an independent body is going to examine the best and fairest way to distribute Aer Rianta’s huge asset portfolio, Deputy Kelly said an analysis of all assets and the capability of the airport and its surrounding area will be looked at during this whole process.
“The new entity will have to take cognisance of that. I believe Shannon Airport will be dealt with more than favourably when this is done. A lot of the questions I get broadly are not that Shannon is getting a bad deal here, it is that Shannon is getting a preferential deal. Some of the people in Cork Airport may think this is the case.
“It is not something that is going to be said in the Mid-West but if you are down in Cork, you could take a different view.”
Fianna Fáil leader Micheál Martin has claimed the Department of Transport is “pro-Dublin Airport” at the expense of Shannon.
In relation to Deputy Martin’s claim, Deputy Kelly said, “I believe and I firmly believe that the DAA and previous governments let Shannon down badly.
“The DAA did focus their attention, strategies and finances on delivering for Dublin Airport. As a consequence, Shannon Airport suffered. I have no qualms about saying that.
“I am in the Department of Transport now and I would say it with the department as well. This isn’t a DAA decision, it is a Government decision. There is a different Government and policy in place. We have to give Shannon a chance. We can’t let Shannon continue on the way it is going.
“We have to restructure Shannon as an airport and a business model. Shannon has capacity and qualities that nowhere else in Western Europe has. It has a landbank, expertise and other attractions.
“The airport itself is unique. All of these things together give it an opportunity that everyone should be supporting and given a chance to. It is not something people should be knocking straight away,” he added.