THE MINISTER for Transport Leo Varadkar has said all options are being considered for the future operation of the country’s three main airports at Dublin, Cork and Shannon with the exception of the provision of State aid to offset losses.
In a statement last night he said the status quo, under which the three airports are owned by the Dublin Airport Authority (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 Minister’s comments to The Irish Times came after this newspaper confirmed yesterday that Shannon Airport Authority (SAA) – which has a certain level of autonomy over how the facility is run – 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.
A spokesman for the Minister said Cork Airport had suggested that instead of the current structure, a CIE-type holding company should be established with the three State airports and Aer Rianta International being operated as subsidiaries.
The proposals by the various airports followed a request from Mr Varadkar to the three airports for their views on the issue of separation from the DAA.
It is understood the board of the SAA, which is chaired by businessman Brian O’Connell, submitted its proposal recently but has yet to receive a response from the Department of Transport.
It engaged external consultants Avia Solutions in advance of formulating its response to the minister. It is understood its proposal does not make any specific mention of which private company should run the airport.
This would likely be put out to tender if the Government was to support the proposal.
While separating Shannon from the DAA is not a new proposal, handing over the State-owned facility to a private entity could prove highly controversial locally.
Shannon airport is considered to be a key cog in the development of tourism and investment for the region. In that respect, trade unions, local tourism bodies and business groups might not support a proposal that would result in the State handing over control or ownership to a third party.
A spokesman for Mr Varadkar had earlier yesterday confirmed that separation of the DAA airports is being reviewed.
“In that context, Minister Varadkar asked the boards of the State airports for their views on the matter,” he said.
“Their submissions have been received. No decision has been taken, and there is no timescale for a decision,” he added.
No comment was available from the DAA yesterday.
Ryanair has been pushing for the DAA to be broken up into three separate airports for a number of years.