Winter of discontent for Shannon Airport

SHANNON Airport was dealt another body blow this week with Aer Lingus’ announcement that it is to suspend its Shannon transatlantic services for 11 weeks at the beginning of next year.
The reason, Aer Lingus says, is that since 1995, it has lost a total of €163 million on its transatlantic flights from Shannon during the winter months. Four flights per week to both New York and Boston will be affected but the airline is committed to continuing to operate services for the remaining nine months of the year.
The decision comes as a major disappointment just a few weeks after hopes of a turnabout in the fortunes of Shannon Airport were raised when Aer Lingus Regional, operated by Aer Arann, unveiled plans to provide direct links from Shannon to Manchester, Birmingham, Bristol and Glasgow from July 1.
This news came after announcements by Delta and Continental Airlines of new transatlantic services from Shannon. Delta has resumed a daily service to New York JFK for the summer season and will operate four services a week during the winter.
Continental has also launched its additional summer service to its Newark hub, bringing to 11 the number of weekly flights from Shannon up to September 8.
The air of positivity that these new services had generated among the Mid-West industry, business and tourism community, has been replaced by nervousness and concerns that Aer Lingus has undermined the airport’s transatlantic operations.
Aer Lingus chief executive, Christoph Mueller said the decision to suspend the services followed a detailed review of route profitability.
“Both these routes have incurred significant losses during the winter months in 14 of the past 15 years. Since 1995, Aer Lingus has lost a total of €163m on its transatlantic flights from Shannon during the winter months, with an average operating loss per winter season of almost €11m. In addition, the airline has sustained declining load factors on these routes for a number of years.
“Aer Lingus is committed to the Shannon market as an important part of our network. However, in order to maintain the viability of our Shannon transatlantic operations throughout the remainder the year, the three-month suspension of these routes when seasonal demand is at its lowest is crucial.
Responding to the decision, Shannon Airport director, Martin Moroney said, “We recognise that route viability is essential for any airline to sustain its presence in Shannon. While this news is disappointing, it is not unexpected owing to the losses experienced by Aer Lingus on these routes.
“We welcome Aer Lingus’ overall commitment to Shannon and will continue to work with them in developing additional short-haul services from Shannon,” he said.
Minister for Defence, Tony Killeen said, “We are fortunate that we have very strong connectivity on transatlantic routes courtesy of Continental and Delta, but measures need to be taken to enable Aer Lingus to improve their performance. This includes the development of a marketing campaign focused specifically on the transatlantic services it operates from Shannon.”
“I am sadly not surprised at this news,” added Fine Gael’s deputy foreign affairs spokesman, Pat Breen. “For the first time in our history, the Shamrock will not be flying out of Shannon Airport for St Patrick’s Day next year.
“This is a body blow for the travelling public in the West and for multinational businesses based in the region. US foreign direct investment makes a huge contribution to the Mid-West,” he said, noting that a significant number of US companies rely on Aer Lingus transatlantic services for transport and connectivity.
“This will also pose significant problems for the IDA and Shannon Development in their efforts to attract additional US-based multinationals to the area,” Deputy Breen said.
“The decision by Aer Lingus to suspend winter transatlantic services is further evidence that Aer Lingus is squeezing the viability out of its Shannon operation,” claimed Fine Gael TD Joe Carey.
He said the decision, at a time when other airlines have reaffirmed their commitment to year-round transatlantic services, shows the lack of foresight and ambition that Aer Lingus has in relation to the Mid-West.
He also claimed that Dublin Airport Authority’s continued control and oversight of day-to-day operations in Shannon has contributed to this decision. He added that it made no commercial sense.
Tourism marketing manager at Shannon Development, Pat Daly said year-round transatlantic services into Shannon Airport are vital for business and tourism on the west coast.
“Nonetheless, we will continue to work with Aer Lingus and the other Shannon-based transatlantic carriers to develop and maintain year-round transatlantic services at Shannon,” he said.
Quality connectivity to the USA is the backbone of the economic well-being of the Mid-West region and the suspension of Aer Lingus services undermine the efforts of the business and tourism sector to overcome the current difficult economic situation, Mayor of Clare, Tony Mulcahy said.