Survey of firms warns of job cuts in mid-west

Ibec survey:A majority of companies in the greater mid-western region expect that the closure of the Aer Lingus Shannon-Heathrow service will lead to job losses in their organisations, a survey carried out by employers' group Ibec and Shannon Development has found.

The survey, to be published today, says 56 per cent of chief executives who took part believed that the loss of the route would impact negatively on their own companies.

The survey found that 92 per cent of chief executives believed the ending of the Shannon- Heathrow service would have a negative impact on jobs in the region.

A total of 200 companies in the greater mid-west region, employing just under 50,000 people - or one in five of all workers in the area - participated in the survey. The companies surveyed had 13,860 employee flights and more than 45,500 customer flights on the Shannon-Heathrow route last year.

The survey found that more than nine out of 10 companies which responded identified the maintenance of the Shannon-Heathrow link as "very important" or "important" for their company.

Some 85 per cent of respondents felt that the route was important for client/customer relations, while more than half of the respondents (56 per cent) felt that the Shannon-Heathrow route was important for investor relations.

The survey found that some 86 per cent of respondents believed the decision to close the route would have a very negative impact on the region as a whole. A further 9 per cent felt that the impact on the region would be "slightly negative".

Almost half the respondents (48 per cent) believed the decision to close the Shannon-Heathrow route would have a "very negative" impact on their company. An additional 41 per cent felt the impact would be "slightly negative".

Ibec director of policy Danny McCoy said: "This region has one of the highest concentrations of multinational companies in Ireland. These are the sort of high-level, knowledge-intensive industries which Ireland needs if it is to prosper. Connectivity is an important factor not just for sales and marketing staff but also, crucially, for bringing customers and potential investors directly into the region."

Kevin Thompstone, chief executive, Shannon Development, said the findings demonstrated the vital importance of maintaining the Shannon-Heathrow air slots which acted as a bridge connecting western regions with vital global markets and infrastructure.

"We are particularly concerned with the fact that almost 70 per cent of businesses surveyed believe that the loss of the Heathrow service will have a negative impact on maintaining and growing investment," he said.