Shannon taskforces file reports

THE two taskforces established to look at the separation of Shannon Airport from the Dublin Airport Authority have now reported, paving the way for the divorce in the new year.

 

Following separation, a new entity will be created, taking on some of the current functions of Shannon Development as well as responsibility for the airport.

Two steering groups on Shannon were appointed this summer, one on Aviation Business Development, which was chaired by Rose Hynes, and one on Change Management, which was chaired by former Dublin City manager John Fitzgerald.

It’s understood that the Aviation Business Development Task Force had productive talks with Ryanair and that a significant new deal will be announced in the coming months.

In a statement to The Clare Champion on Wednesday, the Department of Transport outlined the current position, saying that the two taskforces have reported to the Government-appointed overall steering group.

“Following the Government decision to separate Shannon Airport from the Dublin Airport Authority and merge it into a new entity with a restructured Shannon Development, a steering group of senior officials from five key departments was established to bring forward proposals for the implementation of that decision. That steering group is being assisted by two taskforces.

“These groups are well advanced in their work and the taskforces have recently submitted their reports to the steering group. Minister Varadkar and Minister Bruton will revert to Government in the coming weeks with detailed proposals for Shannon.”

Last Wednesday, Transport Minister Leo Varadkar met with Government TDs and senators from the Mid-West to give more details on the plans for separation.

A number of senators and TDs were approached for comment after the meeting, but they remained tight-lipped on the matter.

Speaking to The Clare Champion this week, Labour party TD Michael McNamara said that the minister had outlined “broad plans” for separation.

Shannon lost in the region of €7 million last year and he acknowledged that putting the airport on a sound financial footing after separation is vital. “It’s very important that it would be debt free and it would have sufficient capital to survive. Obviously, Shannon is losing money hand over fist and it’s something that has to be addressed but it won’t be addressed overnight.”

He said that Shannon would need support in the early stages. “There’s going to have to be money put into it to make sure it can continue. You’re not going to take over something and turn it from a loss-making venture into a profit-making venture immediately. Clearly, it’ll have to have money to operate in the interim.”

Senator Tony Mulcahy also attended the meeting and while he too was reluctant to reveal the details of what transpired, he said he was “more than hopeful” that Shannon will be put on the right path.