Hanlon labels airport break-up as draconian

The chairman of Aer Rianta, Mr Noel Hanlon, has described the Bill breaking up the company as "draconian", but has stopped short of threatening legal action against the proposals.

Reports last weekend suggested that Mr Hanlon and some board members might attempt to halt the company's break-up but, privately, directors now admit there is little they can do.

"We still oppose this but if legislation is put through the Oireachtas then that is that," said one board member yesterday.

The board members are still keen to perform their fiduciary duties and protect the company's interests, he said, but legally there are few options open.

Mr Hanlon, it is understood, remains deeply unhappy that he may have to retire earlier than the scheduled date of September. If the legislation is passed by next month his position, and the board generally, will be abolished.

However, Aer Rianta is expected to send detailed comments on the new Bill to the Government in the next few weeks. Yesterday, law firm Arthur Cox provided an assessment of the Bill for the board. The board will meet again next week.

Speaking to RTÉ after the meeting broke up, Mr Hanlon described the proposals as "Draconian".

He also said the whole initiative was driven by "vested interests", which most observers took to mean Ryanair.

Last night, the Minister for Transport, Mr Brennan, declined to comment on Mr Hanlon's remarks. The Minister is understood to be anxious to avoid any confrontation at this stage, particularly with the legislation before the Oireachtas.

The other major decision to be made in the next few weeks will be to appoint a chief executive of the Dublin Airport authority.

Ms Margaret Sweeney is currently chief executive of Aer Rianta, but she will have to take part in an open competition if she wants to become chief executive of the new structure.

The State Airports Bill 2004, published by the Minister earlier this week, confused many observers in relation to the chief executive's position.

The index to the bill includes the following reference: "Chairperson, directors and chief executive of Aer Rianta ceasing to hold office on Dublin [Airport Authority\] appointment day."

This was taken by several Aer Rianta sources to mean Ms Sweeney's position would cease to exist on the day the Dublin Authority takes over. However, this is not mentioned in the main body of the bill. The only reference is to an open public competition to select a chief executive.

It is expected that the new chairman of the Dublin authority, Smurfit executive Mr Gary McGann, will play a leading part in selecting the new chief executive.

There is some comfort in the bill for current worker-directors on the Aer Rianta board. The Minister, when appointing worker-directors to the Dublin Airport Authority, must have regard to the results of staff elections held to elect worker-directors.

The Minister must also "consult with any recognised trade union or staff association concerned before appointing worker-directors to the board of Dublin Airport Authority".