Ministers predict thousands of jobs for Shannon

A VISION for a thriving Shannon with increased passenger numbers at the airport and thousands of new jobs in the industrial estate was outlined on Monday as the Government officially announced the separation of Shannon from the Dublin Airport Authority and the creation of a new publicly-owned commercial entity next year.

This new entity will run the airport and take over Shannon Development’s property portfolio, while other Shannon Development functions will go to the IDA, Enterprise Ireland and Fáilte Ireland.
At the launch it was claimed that at least two companies (one of which is believed to be Transaero) have already signed Memorandums of Understanding to bring 850 jobs to Shannon.

Speaking at Monday’s press conference at the National Convention Centre in Dublin, Transport Minister Leo Varadkar gave details of what’s in store for Shannon. “We’re announcing today that the Government will grant Shannon full independence on December 31. It will be a separate publicly-owned company with its own CEO, board and management and this will be the first step,” he said.

“Shannon Airport will then be merged with a restructured Shannon Development to form a new public commercial entity in 2013, the working name for which is Newco. This is the second step and will require primary legislation. This is a historic decision and will create a new future for Shannon Airport and put it on a solid footing. The new entity will be set up on a debt-free basis and the existing debt will remain with the DAA. The Newco will include an International Aviation Services Centre.”

The Dublin TD said the group he appointed to look at developing traffic at the airport and to lure aviation businesses to the Mid-West are confident about the future. The Aviation Business Development Taskforce says the centre has the potential to create 3,500 jobs in the next five years.

“We can confirm today that two companies in Shannon have committed to creating 850 new jobs on the condition that airport separation goes ahead. Independence for Shannon Airport has been sought for many years. It’ll free up the board, management and employees at Shannon and business interests, chambers of commerce and local authorities have all supported separation. Airport users, service providers and prospective airlines and all companies that we have spoken with, all want to deal directly with an independent airport.”

While Fianna Fáil and trade unions have voiced their concern at what they say are fanciful projections for the future, he defended the plans produced.

“The business plans have been stress-tested by independent consultants KPMG, who said the plans are robust and the new enterprise will be financially viable. There certainly is a risk but the risk of doing nothing is far greater. The target of 2.5 million by 2021 is realistic and achievable. Shannon enjoyed similar traffic as recently as 2009 and in 2007 it had 3.6 million passengers.

“Recent developments are very encouraging with new services already announced to Chicago, Philadelphia and Faro, with work on Miami and Moscow ongoing. We now intend to make appointments to the board of Shannon Development and the Shannon Airport Authority. The Steering Group will continue to oversee the completion of the work in this agreed timeline.”

Enterprise Minister Richard Bruton said he expects the new entity to succeed.

“We’re creating a new engine for regional development and it’s being built from two structures that, unfortunately for different reasons, were running into extreme difficulties and we have a lot of talent there but the structures they were working in were preventing development. The status quo is not an option but here we have created a real opportunity for exciting development and it builds up what was the best of regional development within the area.

“Shannon Development has done a lot of good work with enterprise but we believe that with the new structures we can not alone sustain that but enhance both the service to multi-national companies through the IDA and to indigenous companies through Enterprise Ireland.

“There will be 55 companies now supported by IDA and 43 companies supported by Enterprise Ireland. Both agencies have developed business plans to ensure that we preserve everything of value and that we enhance the opportunities. Clearly the aviation sector is a major enterprise opportunity and this is one that the new structures will drive.”

He said the property crash had made the business model used by Shannon Development unsustainable. “I’d like to pay tribute to the work of Shannon Development and Vincent Cunnane, who is the CEO. They’ve done great work over the years in the region. Unfortunately, the funding model that supported it for so many years has been severely damaged by the property crash.

“We now have to create new structures that can carry on that work and I believe that in the business plans we have the opportunity to start a new chapter for regional development in Shannon.”
Minister Bruton called for support from the public for the proposals. “I think it’s very important for people to get on board with this opportunity and help us implement it.

“It’s a prospect that’s ambitious and innovative and I think we can deliver it with the continued good will of all the people in the region, who have been very supportive of the work up until now.”