Aer Rianta gives 10-year plan to Government

Report comes as Government begins process of company's dissolution

A business plan for Aer Rianta for the next 10 years to be handed over to Government today will outline the company's views on the future of its three constituent airports.

However tomorrow the Government is to publish legislation that will provide for the dissolution of Aer Rianta and the creation of three separate airport authorities.

The presentation of the report comes amid bitter behind-the- scenes moves reflecting what one source said was a "hugely personal" row between the chairman of Aer Rianta, Mr Noel Hanlon, and the Minister for Transport, Mr Brennan.

The Aer Rianta board met for 12 hours on Monday and Thursday of last week working on the plan drafted by the company and Investment Bank of Ireland.

"It is one of the most detailed reports on the company in recent years," said a source close to the Aer Rianta board.

"The board and management of Aer Rianta is in the best position to assess the future viability of the three (Aer Rianta) airports."

The source said the board would contest the Government's efforts to dissolve it.

"We are entering uncharted waters," he said, when asked what the board could do to frustrate the wishes of its sole shareholder, the State.

However another source said that at Thursday's meeting of the Aer Rianta board, Mr Hanlon mentioned the possibility of a judicial review of Mr Brennan's Bill being sought, depending on the content of the Bill.

A source on the Government side said it had always known the board of Aer Rianta would not go quietly.

"But it is a Government decision and if the Dáil approves it and the President signs it, then it will become law."

The Bill will give the power to Mr Brennan to dissolve Aer Rianta and hand its role over to the Dublin Airport Authority, under the chairmanship of Smurfit executive, Mr Gary McGann.

Authorities for Shannon and Cork airports would, in time, be passed the assets of those airports, but this will not happen until April 30th, 2005 and after business plans for the airports are approved.

The Minister for Finance, Mr McCreevy, confirmed yesterday that he would have to sign off on business plans for the three autonomous airports.

Speaking on RTÉ radio, Mr McCreevy said it was his task to ensure that the best financial package was put in place for the airports. The Government had decided on autonomy for Dublin, Cork and Shannon airports, but care had to be taken.

The new Bill, when published, would show the results of the Government's deliberations on the matter but before total autonomy was granted to the three airports, business plans would have to be put in place and signed off on by him and by the Minister for Transport, Mr Brennan.

The Minister for Transport, Mr Brennan, is hopeful that the Bill he will publish on Tuesday will be passed by the Oireachtas before it rises for the summer recess on July 9th.

The source close to the Aer Rianta board said the board believed it would remain in place until April 2005. Mr Hanlon told the board's recent a.g.m. that he would retire in September.

If Aer Rianta is dissolved and its functions transferred to the Dublin Airport Authority, then that authority will authorise the conduct of certain functions by the Cork and Shannon boards, including the drafting of business plans for those airports.

If the plans are not acceptable to the two ministers who must sign off on them, then the Dublin Airport Authority would retain responsibility for the three airports, as does Aer Rianta now.