‘Debt free’ independence gone at Shannon

The Government is no longer in a position to ensure Shannon Airport is handed over debt free if it is to be given full independence from Dublin Airport Authority (DAA).
Minister for Transport Noel Dempsey has confirmed to The Clare Champion a radical departure in the Government’s aviation policy by insisting that Government funding will not be sanctioned to clear debts at Shannon Airport, believed to be between €10 and €12 million annually.
Following the enactment of the State Airports Act, the Government had previously indicated that Shannon Airport would be made debt free if it secured full autonomy.
Minister Dempsey has, however, signalled the change in presenting three options for the future development of Shannon Airport, which has seen a dramatic drop in passenger numbers from 3.6 million in 2006 to a projected figure of 1.7 million at the end of this year.
The minister outlined the first option as the retention of the status quo whereby the Shannon Airport Authority (SAA) would remain as a component part of the DAA.
The second option was remaining with the DAA with more flexibility and responsibility to raise its own finance and do more of its own marketing.
Option three involves Shannon Airport securing full autonomy through an investment raised by the airport itself or through the private sector.
Minister Dempsey also stressed the Government has no “ideological hang up” about what is the best option at this time and he had an “open mind” about what is the best strategy for the future development of the international facility.
He confirmed that he had already asked SAA chairman, Brian O’Connell and his team to produce a business plan outlining the best scenario for the airport and, if the team recommended the airport should “go it alone” then a business case had to be completed supporting this option.
Acknowledging there are some people in Shannon Airport who do not want it to be fully independent, he noted they could also make their submission, which would be fully taken into account. He confirmed that next year he would sit down with all the relevant stakeholders before a final decision is reached.
Asked about the current debts at Shannon Airport, which are believed to be between €10 and €12 million annually, the minister noted that last year the airport received €22 million for the development of the terminal.
“The €22 million didn’t fall out of the sky. That is like Cork Airport terminal where they had €100 million of a debt and people there were saying the airport should be debt free, off we go.
“There is no such thing as debt free, someone has to pay that. At the moment the Dublin Airport Authority are paying this. Because of State aid rules it would be very difficult to say we are letting Shannon Airport go with no debt, it could be seen by anti-competitive because Cork would be competing with them.
“Without prejudicing the model some simplistic solutions are not often. Workable,” he said.