Call for independent body to operate Shannon airport

The chief executive of Shannon Development has called for a new independent public body to replace Aer Rianta as operators of Shannon airport.

At the publication of Shannon Development's annual report, Mr Kevin Thompstone urged the Government to allow a new company under regional management and control to operate a publicly owned Shannon airport.

Presenting his plan, Mr Thompstone claimed the Government must "take this brave step. Otherwise, the future for Shannon airport will be even more difficult."

Mr Thompstone said that, with 6,000 seats per week having been cut at the airport, "there is a need for a radical new approach to ensure the survival of Shannon Airport as an engine for tourism and industrial growth along the entire west coast of Ireland".

He said Government airport policy should be driven by national and regional economic considerations. "The current ownership regime was designed more than 30 years ago and, while it has been effective, it is now questionable whether it is an appropriate structure to meet the rapidly changing environment."

Speaking ahead of a visit by the Minister for Transport, Mr Brennan, to Shannon next week, Mr Thompstone said: "The airport now needs to be run by a newly formed independent regional public body, led by a board with strong commercial, financial and aviation expertise."

Mr Thompstone added that such a body was "consistent with Government policy of achieving better-balanced regional economic development and with best international practice in locations such as Canada and Denmark".

Mr Thompstone said that a similar independent public body should also be put in place to operate Cork airport.

"The only people who are going to solve the issues that face this region are people who live and work in this region. We must get out of this mode of constantly blaming Government for our problems and instead take responsibility."

Mr Thompstone supported his argument by presenting a Shannon Development policy document on the various options facing Government on Shannon's future.

The paper argues that if the status quo remains with Aer Rianta operating the three airports, the "perspective and focus is on the entire Aer Rianta group and dilutes the strategic focus for Shannon and Cork". The paper says that such a situation was " highly likely to lead to increased regional economic imbalance".

Mr Thompstone also argued against privatising Shannon airport, claiming there would be a "deep focus on profit maximisation, not regional economic development".

The annual report showed that there was a net loss of 698 jobs in the region. Employment levels in companies assisted by Shannon Development totalled 21,351, a 3.2 per cent reduction of the 2000 level. Mr Thompstone anticipated "a further erosion of the region's industrial base in the months ahead".

Mr Thompstone also cited bottlenecks in the road and rail network and energy supply putting a brake on the region's development potential.

In response to the Shannon Development proposal, a spokesman for Mr Brennan said last night the Minister believed Shannon needed more autonomy in its operations.

He said the proposal was one of the models Mr Brennan was examining, adding that the airport being operated by a regional management board but remaining under the ownership of Aer Rianta was another option. The spokesman said that before Mr Brennan decided on Shannon's future, he would listen to the views of those in the Shannon when he visited Shannon Friday week.