Shannon Group establishment ‘important’

THE drafting of the Bill to establish Shannon Group, which is taking over from Shannon Development and the Shannon Airport Authority, is an important step, according to Ministers Richard Bruton and Leo Varadkar.

 

Mr Bruton said the moves are important. “By restructuing the enterprise agencies in the Shannon Free Zone we can ensure that indigenous and multinational industry already in the Zone, or considering locating there, has access to a comprehensive range of supports.

“By merging a strong independent Shannon Airport with the extensive property holdings, experience and expertise of Shannon Development we will create a strong new State company, which will work with the IDA and Enterprise Ireland on developing an International Aviation Services Centre in the region. I am convinced that, with strong implementation, we can create a world-class cluster in this region and help create the growth and jobs we need.”

Mr Varadkar also said it is a positive move. “This is another significant milestone in the restructuring of the State’s assets in Shannon. The changes that we have already made and the further changes that will be facilitated by this Bill when enacted, will serve to drive the economy of the Shannon-Limerick area and the wider national economy.
“I have reconstituted the board of the Shannon Airport Authority and Minister Bruton has also appointed three members of the SAA board to the board of Shannon Development in order to augment the relationship between the two companies at the earliest possible stage.”

Mr Varadkar also spoke of a particular measure on insolvency in the Bill.
“The new Bill will also provide the necessary legal mechaism to allow Ireland to adopt a new insolvency regime in relation to aircraft and aircraft engines, equivalent to the regime known as Alternative A under the Cape Town Convention.”

This means access to cheaper financing of aircraft will be available in Ireland, in a way that is not possible at present and is likely to be well received by the industry.

Clare TD Pat Breen was another to welcome this week’s development. “The approval by Cabinet of the drafting of the legislation is a major step forward in advancing the creation of the new Shannon Airport Authority.  The new State company, Shannon Group plc, will combine the expertise and experience of Shannon Development and Shannon Airport. The new structure will allow the airport to increase traffic, create jobs and support development in the wider region. Crucially, it will allow the airport and the region to regain control of its own development.”

His party colleague, Joe Carey, added, “Already, Shannon Development has undergone major restructuring during the first half of this year. The plan is that it will retain its significant property assets including the strategic lands and property in the Shannon Free Zone, adjacent to the airport, as part of the new Shannon Group entity and it will be renamed Shannon Commercial Enterprises Limited.

“For years, Shannon Airport was allowed to stagnate and decline unchecked. Since coming to office, this Government has proritiesd Shannon. We now have an independent airport free from the shackles of the Dublin Airport Authority, a new board, a new CEO and new tax incentives to accelerate the establishment of Shannon as a world leader in the maintenance, repair and overhaul of aircraft.”

Chair of the Shannon Airport Authority, Rose Hynes, said it is another positive and that she looked forward to the legislation being passed. “There are exciting times and opportunities ahead for the new Shannon Group plc.  We have already seen signs of this with the first month-over-month passenger numbers growth at Shannon in five years just last month.

“We have every confidence that the new Shannon Group plc will be successful and I look forward to the finalisation of the second phase of this merger by year-end.”