Separation ‘most important enabler’ of future success

THERE has never been much support in this region for having Shannon controlled by the Dublin Airport Authority (DAA) and the Aviation Business Development Taskforce’s final report said ending the current arrangement is the best thing that can be done.

“The separation of Shannon Airport from the DAA is the single most important enabler of this future success. A failure to move forward with separation will lead inexorably to the further decline of the airport and the surrounding region. This need not happen.”

It found that the projected passenger level of 1.5 million expected at Shannon this year is not sustainable and the existing terminal could adequately cater for three times this number.

While the US Customs and Border Protection preclearance facility offers an advantage, the report found competitors are likely to catch up, with similar facilities likely to appear at other airports in the coming years.

The fact that Shannon, uniquely among the three State Airports, is open 24/7 365 days a year was found to impose additional costs, which aren’t offset by emergency landings.

While Aer Lingus currently concentrates its US services on Dublin, it may turn somewhat towards Shannon in the latter years of this decade, the report stated.

“From 2016-17 the arrival in the marketplace of new smaller aircraft types capable of flying transatlantic routes, in which Aer Lingus has expressed an interest, may open up further opportunities for more frequent service from Shannon.”

The use of Shannon as a fifth freedom transit point, something already under consideration by Transaero, offers opportunities. “Airlines from Africa, the Middle East and South Asia may lack aircraft able to reach North America non-stop and may therefore have to stop for refuelling en route. The use of Shannon not only permits their passengers to clear US customs and immigration but also gives the airlines the opportunity of generating additional passenger and cargo revenue by serving unmet demand for direct services between Ireland and points in the US.”

Much was made in the past of the potential of developing an international cargo hub at Shannon and Lynx group were expected to develop a major centre creating many jobs but the report doesn’t believe that is feasible.

“It is the view of the taskforce that Shannon cannot at this time realistically aspire to being a pan-European cargo hub, such as Cologne, Leipzig or Liege, but can successfully serve a more focused role. The airport’s road freight catchment is far less than continental Europe hubs but it can credibly aspire to providing cargo services for much of Ireland and improving the competitiveness of major Irish export sectors.”

The report found that maintenance, repair and overhaul (MRO) of aircraft is an area where Shannon can have successes. It found that in some cases a lack of available infrastructure is impeding progress.

“The taskforce has formed the view that the immediate obstacle preventing many Irish-based firms from establishing or expanding operations at Shannon is the non-availability of appropriate infrastructure. This infrastructure includes not only hangars and aircraft parking areas but also teardown pads (special parking areas for aircraft being dismantled). Maintenance providers often do not wish to own their facilities, preferring instead to enter into long leases.

“The facilitation of private sector infrastructure investment is therefore a key enabler to the development of the MRO sector in Shannon”.

It recommended that hangars not be built on a speculative basis but only when there was firm interest from tenants.

The report said Shannon has advantages for the training of pilots, when compared to Dublin, as both the airfield and the surrounding airspace aren’t congested. It recommended that Shannon be marketed as a location for pilot training organisations.

It found that colleges in the region will be important to the development of the proposed IASC and it recommended developing specific courses by UL, LIT and other institutions.

Shannon College of Hotel Management should be amalgamated with NUI Galway, while remaining at Shannon, it was recommended, which it said would turn the college into a “positive contributor” to the airport’s finances.

There is some scope for getting more business from business jets, it is felt. “Shannon already attracts an average of about 10 corporate-aircraft arrivals or departures each day. Approximately 95% of the business jets using Shannon are making fuel stops before or after Atlantic crossings, although relatively few of the US-bound aircraft are making use of the CBP facility at Shannon. There is clear scope to target a much higher level of corporate aircraft activity, building on existing corporate aircraft activity, building on existing corporate aircraft facilities at Shannon and potentially enhancing them with additional dedicated terminal or hangar infrastructure for corporate and private aircraft.”

Shannon would be a good place for a national aviation museum, it is claimed, and some exploratory work has already been done.

“A suitable site for such a museum has been identified on Shannon Airport property. Initial soundings undertaken with the local authority have met with an enthusiastic reception and a number of potential leads for philanthropic support have also been identified. The taskforce recommends that a small working group now be established under the aegis of the new Shannon entity to formulate plans for a National Aviation Museum.”

Another intriguing proposal is for an aviation conference, which would be linked to the Gathering. “Drawing on Shannon’s planned international centre of excellence for aviation and in the context of the Gathering in 2013, it is suggested that an aviation conference in the Shannon Region could be organised in summer 2013, with a specific focus on the Irish aviation diaspora worldwide.”

With regard to the interaction with Clare County Council, the report stated work should be done to agree on areas for specific types of development and it also recommended that the council look at rates relief and the possible alleviation of development contributions to offer incentives to new enterprises.