RYANAIR DID not waste any time in, ahem, welcoming corporate lawyer Pádraig Ó Ríordáin to his new role as chairman designate of the Dublin Airport Authority this week.
Ó Ríordáin is a partner with Arthur Cox, legal adviser to Aer Lingus. Ryanair was quickly out of the traps to describe his selection as the new chairman of the DAA as a “crony appointment”.
There wouldn’t be much love lost between the two sides.
For its part, the Department of Transport said there was no conflict for Ó Ríordáin as he did not work on the Aer Lingus account. The department is happy that Arthur Cox has strong Chinese walls in place.
However, there were a few raised eyebrows elsewhere at the appointment.
Ó Ríordáin was a key adviser to the previous Fianna Fail-led government during the financial crisis, in particular during discussions on our bailout with the EU/ECB/IMF troika and on the establishment of the National Asset Management Agency.
These were decisions heavily criticised by both Fine Gael and Labour in opposition.
In Government, they were happy for Ó Ríordáin to advise on further restructuring measures in the banking sector.
He was responsible for legally implementing the €5 billion burden-sharing with subordinated debt holders through liability management exercises and application for a subordinated liability order.
He has also worked with the new Government on the recapitalisation of the banks during 2011.
Whether the chairmanship of the DAA should be considered a prize or a poisoned chalice is a matter for debate.
Ó Ríordáin will find a full in-tray on his first day of duty with the authority. Among other things, he needs to find a new chief executive to replace Declan Collier.
He also needs to find a solution to the DAA’s hefty pension deficit; negotiate the politically tricky issue of separation for Shannon and Cork airports from the DAA; and oversee growth in passenger numbers. And that’s to say nothing of the verbal bashing he is likely to receive from Ryanair over the next three years.
Even Aer Lingus, which is more moderate in its language towards the State-owned airport manager, has described the increases in passenger fees of recent years at Dublin airport as “insane”.
It’s no wonder it took Minister for Transport Leo Varadkar almost seven months to persuade someone to take the DAA role.
If past experience is anything to go by, Ó Ríordáin will earn every cent of his €31,500 annual remuneration as DAA chairman.