Minister for Transport Martin Cullen has signed an agreement with the United States which will see the Shannon stopover end in April 2008.
Mr Cullen, who was in the US this week for talks on an EU-US 'open skies' agreement for aviation, said there would be a 'transitional' period for the stopover, beginning next November. He said Ireland was the only country in the EU to secure such an agreement.
Minister for Transport Martin Cullen
Currently, half of all flights between Ireland and the US have a compulsory stopover at Shannon. The proposed end to the stopover has been the subject of controversy, as the stopover is seen as economically important to the Shannon region.
During the transition period, the ratio of Dublin/Shannon flights will change from 1:1 to 3:1, so that for every one flight to or from Shannon an airline may provide three flights to or from Dublin.
Also under today's deal, Irish airlines will have access to three additional destinations in the US from November 2006, over and above the four destinations currently being served. These three destinations will be nominated by the Irish authorities, who will have flexibility to change those cities during the transition period.
Cargo-only services will not be subject to the Shannon stopover requirement from November of next year.
Mr Cullen said he had sought and obtained assurances from Aer Lingus that, in the context of a level playing field between the airline and its competitors, it will maintain the current level of transatlantic traffic - which is around 400,000 passengers a year - with regular year-round scheduled services between Shannon and Boston and New York.
Following intensive discussions this week, Mr Cullen met with the US Secretary for Transportation Norman Mineta with a view to securing what he said was "an appropriate transitional arrangement for Ireland, in particular to facilitate Shannon airport in adjusting to an EU-US Open Skies regime".
"I made it clear that Ireland supported an EU-US agreement, but that this support was contingent on achieving an appropriate transitional arrangement for Shannon airport. I emphasised the importance of a good transition for Shannon, and placed this in the context of wider Ireland-US relations. I impressed on Secretary Mineta the need to conclude on this issue before the EU-US aviation talks next week," he said.
The Minister said Mr Mineta "expressed the US's strong desire to secure an EU-US agreement, and its disappointment at the long delay in bringing the negotiations to the current stage".
"The US's clear preference was for no further transitional period for Shannon," Mr Cullen said.
"This was a good deal, hard-won, which gives Shannon a good opportunity to prepare for the arrival of Open Skies. It also provides Aer Lingus with an opportunity to fly to three new destinations in the US from 2006. This will enable the company to develop its transatlantic route structure in the run up to Open Skies, open new markets for Irish tourism, offer greater choice to consumers and help grow jobs in Ireland," Mr Cullen said.
The final round of the EU-US negotiations begins in Washington next Monday.
Aer Lingus welcomed and said the new framework will offer Aer Lingus the opportunity to fly to three additional US cities as well as increasing frequency on Dublin non-stop services.
Dermot Mannion, chief executive of Aer Lingus said: "This development provides Aer Lingus with the regulatory framework to profitably expand our transatlantic operation. We envisage major benefits resulting from this for both the airline and the national economy. It will provide a major impetus for Irish tourism from the US market. Our objective is to be able to take full advantage of the agreement from its implementation date in November 2006."
A spokesman for the Shannon Airport Authority admitted the reports this afternoon had come as "a surprise".