Chamber prepares to meet Minister Varadkar

WELCOMING the publication of the Booz and Co Report on the future ownership and structure of Cork and Shannon airports, Shannon Chamber president Damian Gleeson expressed satisfaction that a definite decision is imminent.

In a presentation to the minister earlier this year, the Chamber made the case that Shannon should be separated from its current structure but remain under some other form of State protection/ownership to ensure its survival as a key piece of national infrastructure.
Chamber president Damian Gleeson said, “We emphasised that the airport should be run with a commercially driven ethos, which in conjunction with no debt, adequate working capital and an improvement of its cost structure would eventually allow it to be self-sustaining.
“Shannon Airport is a vital piece of infrastructure which supports the economic development of the Mid-West. Every viable option to sustaining its future must be assessed for its ability to generate meaningful economic activity for the region. Any new structure should not be overburdened with debt but supported by solid business and financial plans.”
He identified one preferred option for Shannon’s future. “Of the two options now recommended by Booz and Company, the scenario whereby Shannon moves to a concessionaire model, which would see the airport operated by a third party specialist airport operator giving a stewardship role to the local authorities in Clare and Limerick, to local commercial interests and to Shannon Development in a holding company, offers the most potential for Shannon’s future development. It places decision making for the airport’s future at a local level.
“As long as this proposed autonomous structure comes without debt, Shannon could look forward to a new future whereby every avenue for its development could be examined for innovation and its ability to add value, traffic and revenue to Shannon. Harnessing the support of all stakeholders in the Mid-West would lead to energised thinking and a new impetus for taking the airport in a new direction.”
He said attempts to chart a new course for Shannon have to be made. “Shannon cannot rely on passenger traffic alone. As stated in the Booz and Co Report, it’s a 24/7/365; this factor must be examined for the potential it offers. Additional projects of the scale of the Lynx cargo hub and the humanitarian aid centre currently being considered need to be identified and progressed. Passenger movement is still an essential component of the airport and for the region’s populace. Routes such as the current Heathrow slots are critical and must be maintained and built upon.
“Cutting ties from a national structure is going to be challenging for Shannon. Harnessing the airport’s viability will require support from all stakeholders in the Mid-West. However, Shannon has a history of innovation and facing adversity with courage and determination. The corporate capability that has fuelled the region in the past is still present. It needs to be re-energised in the manner suggested in the Booz and Co Report and chart a new future for the airport and the region. We look forward to welcoming Minister Varadkar to the Chamber’s spring lunch on Friday, March 30 and to giving our members the opportunity to put questions to the Minister on the contents of the report and on issues relating to Shannon’s future.”