Preparations in place for new, all-embracing Shannon Group

THE basis of the legislation for the merger of Shannon Airport and Shannon Development has been prepared and it should be passed by the Oireachtas later this year, the Government has said.

 

It has also been revealed that Shannon Group, the name of the new entity, will combine the running of the airport and Shannon Development’s property portfolio.

In December there was confirmation that the two would be brought together, with both having been in the doldrums for years. Shannon Airport has been loss-making since 2008 and hit a 24-year low in terms of passenger numbers last year, while Shannon Development recorded losses of over €37 million from 2009-2011.

On Tuesday, the Government announced it had approved the drafting of the required legislation to bring the new entity into existence. The Shannon Aviation Services and Miscellaneous Provisions Bill will pave the way for its creation.

In December, the Government announced that Shannon Development would be losing most of its functions, prior to the merger with the airport. The statement this week from the Departments of Transport and of Jobs, Enterprise & Innovation outlined the progress that has been made date. “The restructuring of Shannon Development, ahead of its merger with Shannon Airport Authority, within Shannon Group, is nearing completion. Approximately 25 staff will remain in the company which will be renamed Shannon Commercial Enterprises Limited, to manage its property portfolio.

“The enterprise and tourism functions of Shannon Development, together with the associated staff, are in the process of transferring to the relevant national agencies, the IDA, Enterprise Ireland and Fáilte Ireland.

“In addition, 25 staff in Shannon Development availed of a voluntary scheme in May of this year and almost 30 others have been redeployed to other State agencies in the Limerick and Shannon area. Further placements and redeployments will be effected over the coming weeks.”

Regarding the new entity, it says there will be a degree of separation between the property side and the airport. “Shannon Airport was separated from the DAA last December and now operates on an independent commercial basis. This will continue to be the case under the merged corporate structure that will be provided for in the new Bill.

“Shannon Development has undergone major restructuring during the first half of this year and when completed, it will retain its significant property assets including the strategic lands and property in the Shannon Free Zone adjacent to the airport. To emphasise this more focused commercial remit, Shannon Development will be renamed Shannon Commercial Enterprises Limited.

“Under the proposed new regime, both of these companies will operate under the aegis of Shannon Group and the latter will promote and drive interaction and common purpose between them at local level. This will include the promotion and development of an international aviation services centre on the Shannon campus, centred on the airport.”