Jobs warning because of reduced flights to Shannon

At least one major US company employing 500 people in the mid-west has indicated it will pull out of Ireland if flights into …

At least one major US company employing 500 people in the mid-west has indicated it will pull out of Ireland if flights into Shannon are reduced.

A net loss of 1,000 industrial jobs had been anticipated for the area as a result of the international economic turndown, but this figure has now been revised to 2,000 as a result of events since September 11th.

A special task force for the region is concerned at even greater job losses if Aer Lingus continues with its current reduced schedule at the airport. Continental has already pulled out of Shannon, and Delta has reduced services to just one route, Shannon to Atlanta.

Yesterday, a member of the task force, Mr Kevin Thompson, of Shannon Free Airport Development Company, said: "Over the last number of years there has been significant net growth in manufacturing but this year we expected to see a net decrease of 1,000 in the region." The crisis in the aviation industry meant the final figure "could get close to 2,000 by the end of the year".

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SIPTU regional secretary Mr Joe Cunningham, who is also involved in the task force, said Shannon was "crucial to the whole region. There was air access through Knock and Galway but Shannon was the only one that can cope with industrial needs."

Air traffic is already suffering. If current trends continue there will be 1.6 million people travelling through Shannon next year, compared with 2.4 million in a normal year.

There are 36,000 jobs between Galway and Kerry linked to the airport. Many are in tourism but Mr Thompson said 50 per cent of all businesses in the area use Shannon's passenger services and 40 per cent use its freight facility.

"We've had complaints from different companies about the difficulties with transport and communications between Shannon and Dublin," Mr Thompson said. Aer Lingus had now reduced flights from five a day to two a day between the airports.

"This has serious implications for business, specially the loss of the 05.40 flight from Shannon to Dublin and the 22.15 flight from Dublin to Shannon. It removes the possibility of same-day travel from 14 US cities.

"It impacts on the ability of existing businesses to do business and on new business coming in." There had been "a lot of emphasis on e-commerce but there is no point having broadband connectivity, investment in educational infrastructure and the highly skilled workforce that produces if people and goods cannot get in and out of the region."

The region's largest computer manufacturer, Dell, has not indicated it has any problems to the task force but other US-based companies have signalled difficulties could arise, even in the short term.

"In addressing the problems we are not being pessimistic but realistic", Mr Thompson said. "In fact, I would be optimistic about our ability to solve the problem. But there isn't a realisation nationally of the impact the cuts at Aer Lingus will have on business in the region."