DAA says separation of airports may not be viable

THE DUBLIN Airport Authority (DAA) has effectively urged the Government to abolish the boards of Shannon and Cork airports if…

THE DUBLIN Airport Authority (DAA) has effectively urged the Government to abolish the boards of Shannon and Cork airports if it further postpones or decides not to proceed in its entirety with proposals to grant these facilities full independence to run their own affairs.

At present, the DAA owns the State’s three main airports at Dublin, Cork and Shannon. However, Cork and Shannon have their own boards and enjoy some degree of autonomy.

This year Minister for Transport Leo Varadkar asked the DAA and the Shannon and Cork airport authorities for their views on possible separation of the three airports.

The Irish Timesunderstands that, in its confidential submission to the Minister, the DAA has said that it could not confirm whether such separation of the various airports would be financially viable in the current economic circumstances.

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It is understood that the DAA has also maintained that if the Government further delayed the planned separation of the three airports – which is provided for in aviation legislation – or decided not to proceed with the move at all then the rationale for the continued existence of the Shannon and Cork boards would cease to exist.

The DAA submission is believed to indicate that if in the future the Government decided to place the separation of the three airports back on the agenda then it could reconstitute the authorities in Cork and Shannon.

It is also understood to have pointed out that it currently has to invest management time and costs in servicing the authorities at Cork and Shannon airports.

A spokesman for the DAA declined to comment yesterday on its submission to the Minister.

Last weekend, Mr Varadkar said all options were being considered for the future operation of Dublin, Cork and Shannon airports with the exception of the provision of State aid to offset losses.

In a statement, he said the status quo, under which the three airports were owned by the DAA, was “not tenable”.

“Both Cork and Shannon airports are sustaining losses and all options are being considered, with the exception of State aid,” he said.

The Irish Timesreported last Saturday that the Shannon Airport Authority (SAA) had submitted a proposal to Mr Varadkar suggesting the Co Clare airport should be separated from the DAA and leased to a private company for a period of 15 to 35 years.

The SAA, which is chaired by businessman Brian O’Connell, engaged external consultants Avia Solutions in advance of formulating its response to Mr Varadkar.

It is understood its proposal does not make any specific mention of which private company should run the airport.

It is understood that some board members of the SAA are unhappy with the submission made to the Minister.

Some SAA board members believe that the recommendation that the Co Clare airport should be leased to a private company had not been approved by the board in advance of being sent to the Minister.