Minister's move confirms end of Aer Rianta

The Minister for Transport, Mr Brennan, has taken the final steps toward the abolition of Aer Rianta, it has emerged.

It is understood the Minister has sent official appointment notices to the 12 new members of the Dublin Airport authority. They are now expected to take control of the assets, liabilities, contracts and obligations of Aer Rianta from October 1st, otherwise known as the "appointed day".

The Aer Rianta chairman, Mr Noel Hanlon, is expected to finish his term of office on September 30th.

It is understood Mr Brennan will meet the members of the Dublin Airport authority on Monday after they hold a meeting near the airport. The group is chaired by the managing director of Jefferson Smurfit, Mr Gary McGann. Mr Brennan hopes the meeting will herald a new era for Dublin and the other airports.

The Minister is anxious to press ahead with the abolition of the Aer Rianta board, although it is now accepted that Mr Hanlon will be allowed to finish his term of office, which runs until September 30th.

The position of Aer Rianta managing director, Ms Margaret Sweeney, is the only remaining difficulty for the Government.

Government sources claim Ms Sweeney is operating as an acting chief executive and consequently is not automatically entitled to become chief executive of the new body. Government sources claim that, in her letter of appointment, this position was made clear.

Under the State Airports Act 2004, the chief executive of the Dublin Airport authority is to be selected by open competition.

However, Ms Sweeney may argue that her post has effectively been abolished. She may submit a significant claim for compensation to the Department, but indications last night were that the Government would strongly resist such a move. The Government is also keen that, if possible, the matter be handled by the new authority rather than by the Department of Transport.

From October 1st, the Dublin Airport authority will effectively control the assets of all three airports. This is because the two new authorities at Cork and Shannon will not immediately take ownership of their airport assets, although they are empowered to enter into arrangements with Dublin Airport for the transfer of certain unspecified day-to-day functions.

However, Cork and Shannon cannot take ownership of the assets until they produce business plans that are to the satisfaction of Mr Brennan and the Minister for Finance, Mr McCreevy, or his successor. According to the legislation, this cannot happen until next May at the earliest.

The breaking up of Aer Rianta has been one of the most controversial issues in Irish aviation for several years. If it finally takes place, the Minister may tackle next the issue of a second, privately owned, terminal at Dublin Airport.