Fear of damage to the Coalition parties in the elections was the main reason that Ministers decided to postpone the plan to break up Aer Rianta at their meeting on Tuesday, it has emerged.
Several Ministers became alarmed at newspaper reports that the Minister for Transport, Mr Brennan, was to seek Cabinet approval for his scheme that day, despite strenuous union objections.
Although Ministers were concerned not to jeopardise the partnership talks with unions, the main reason for postponing Mr Brennan's plan was a fear of losing votes in the local and European elections, sources said yesterday.
It now seems likely that no break-up plan will be approved by the Cabinet until a meeting on June 15th at the earliest, four days after polling day.
It became clear to Mr Brennan at Cabinet on Tuesday that he would not have his colleagues' support for his plan. Yesterday the Taoiseach, Mr Ahern, told the Dáil that the reason for postponement was the need for consultations with unions.
The general secretary of the ICTU, Mr David Begg, wrote to the Minister this week arguing that the break-up should not go ahead as it would not bring financial benefits to the airports.
Yesterday the Aer Rianta chairman, Mr Noel Hanlon, raised serious concerns about Mr Brennan's plan at his final AGM. He said while he would implement Government policy, there were "considerable difficulties" with the plan and there was a "serious vacuum" in relation to airport policy in Ireland.
Mr Hanlon said he would be "disappointed" to see Aer Rianta broken up and warned it could have dire financial consequences.
"Aer Rianta is a great company. A worldwide company, recognised throughout the world. We have duty-free shops in 34 locations throughout the world, and as I understand it, a lot of that will go in the break-up of Aer Rianta because the disposal of assets is probably one of the items on the agenda, and I will be very sorry to see that happening, to witness the demise of the jewel in the crown of State companies in Ireland," Mr Hanlon said.
The Aer Lingus chairman also strongly criticised the aviation regulator, Mr Bill Prasifka, whom he claimed had proven "to be a disaster" for the aviation sector.
It has also been disclosed that Mr Hanlon wrote to the Minister for Finance, Mr McCreevy, in recent days about his concerns.
Yesterday a Government spokeswoman said the Government still intended to have the legislation enacted before the Oireachtas recess in early July. The Taoiseach told the Dáil yesterday that the Government would continue negotiations with the unions and "we hope to bring those to fruition as soon as possible, after which we can introduce the Bill."
Trade unions that have had sight of a Pricewaterhouse Coopers report say the Brennan plan casts doubt on the financial viability of the airports operating as independent entities, and thus threatens the future of their members.
In the wake of what the Labour leader, Mr Pat Rabbitte, called Mr Brennan's "aborted attempt" to win Cabinet approval on Tuesday, the Taoiseach said the Government had decided last year against privatisation of the State's airports, and would retain them in State ownership. However, the Government would establish Dublin, Shannon and Cork airports as "fully independent autonomous authorities under State ownership".
In response to trade union concerns over the pay and security of existing Aer Rianta workers under the plan, he insisted that staff would not be affected by the changes. He said Mr Brennan had "repeatedly stated publicly that there will be no diminution in the tenure or terms and conditions of employment of Aer Rianta workers arising from the decisions on which he is working".