The Government has been advised by Attorney General Paul Gallagher SC that a majority vote by Aer Lingus shareholders in favour of the retention of the Shannon-Heathrow air route at an egm would not be enough to save the service.
Ministers who discussed the controversial decision to abandon the route at the first Cabinet meeting since the summer break yesterday were told that, ultimately, the power to reverse the decision rests with Aer Lingus management and not the shareholders.
After the three-hour meeting, Minister for Transport Noel Dempsey said while he was deeply disappointed at the Aer Lingus decision it must be accepted that it will not be changed and the focus now needs to be on finding an alternative before next January.
Mr Dempsey said he acknowledged the move will affect the region but stood by his earlier comments that there had been exaggeration with "scary" statements being made such as a claim that 100,000 jobs could be lost.
Asked did his comments about exaggeration apply to his Cabinet colleague, Minister for Defence Willie O'Dea, who had said the pull-out represented an "Armageddon situation", Mr Dempsey said: "The same answer applies."
After the Cabinet meeting, however, Mr O'Dea said he was "very happy" that the Government was committed to finding an alternative and ensuring connectivity with Heathrow and Shannon be maintained.
He said Taoiseach Bertie Ahern was fully up to speed on the situation and he was confident that an alternative would be found by next January and that there would be no gap in service.
Mr O'Dea, who was very critical of the decision, said a lot of Cabinet colleagues had been on holidays when it was announced and had not grasped the seriousness of the situation initially, but now did.
He told The Irish Times that while people are entitled to protest, those campaigning to save the route have nothing to achieve while the Government was attempting to come up with alternatives.
Mr Dempsey briefed Ministers on an interim inter-departmental report on the impact of the ending of the route on business, tourism and regional development. The Government has asked the group to conclude its report in the next two to three weeks.
Mr Dempsey said it was agreed at the meeting that he would do all in his power to assist the Shannon Airport Authority to secure alternative London- Heathrow services, and to develop connectivity with other cities such as Paris and Amsterdam.
"The importance of continued connectivity from the midwest to as many international destinations as possible is recognised by Government. Government will pursue all means possible to maintain the connectivity." He said as well as talks with British Midland he understood that the Shannon Airport Authority was also talking with other carriers.
Mr Dempsey said the Shannon-Heathrow route was a very attractive one. He said the Government would be applying to Brussels for assistance from the "route fund", but said as Shannon-Heathrow was profitable there was "minimum" chance of funds being forthcoming. The Government buying routes was not the answer either as this would not be be possible under competition and State aid rules, he added.
Meanwhile, the newly formed Atlantic Connectivity Alliance, which is opposing the ending of the service, sent a detailed briefing document to Cabinet Ministers to counter what it claims is a "campaign of misinformation" about the real impact of the decision. The document claimed that the ending of the Shannon-Heathrow service has already seen tourism projects worth many millions, and capable of creating some 600 new jobs, being put on hold.
A group of some 30 protesters, including TDs, councillors and business representatives from the Shannon region, protested outside Government Buildings yesterday as the Taoiseach and Ministers met inside.