Airports chairman opposes break-up

OUTGOING Aer Rianta chairman Noel Hanlon says the Government should not proceed with the break-up of the company.

Mr Hanlon said there was no reason why the airports operator should be split into three companies, as Cork and Shannon would end up incurring losses for several years.

He said Aer Rianta was the “jewel in the crown” of the semi-State companies and that there would be difficulties with the break-up because of the financial burdens placed on the individual airports with heavy debts being put on the southern facilities.

Mr Hanlon said while the board was working with the Department of Transport, he believed Aer Rianta should remain together as Cork and Shannon were currently being sustained by the financial muscle of Dublin Airport.

He cited a report prepared by PriceWaterhouseCoopers (PWC), which showed that airport landing charges may have to rise at Dublin to shoulder the cost of the split.

“Of course Aer Rianta has been, and is, a great company and I am disappointed that it is being broken up.

“But Government policy is Government policy and we have to implement it,” Mr Hanlon said yesterday.

“There are considerable difficulties and that is clear from that [PWC] report. There isn’t enough reserves now to implement [the break-up plan] as it stands. “Shannon is loss-making and it will continue to be loss-making in the future. Cork has a sound future and can be very profitable down the road.

“Dublin is, of course, sustaining the other airports along with our overseas operations.”

Legislation to pave the way for Aer Rianta to be broken up is expected to be published and passed before the Dáil’s summer recess. This will allow Aer Rianta to be broken up with separate boards and managers of the three airport authorities.

Mr Hanlon’s view is at odds with that of the Taoiseach, who said yesterday that the Government would be pressing ahead with separation plans.

“Government policy is to try and make the airports viable so that we increase capacity, create more jobs and grow the market. “There are issues as to how we do that at Shannon Airport. We know that passengers must increase to two million to make it viable.

“If we succeed in dealing with issues at Shannon, we can turn it into an excellent airport.”

Unions representing workers at Aer Rianta are also against the break-up plan and a feasibility study carried out by their consultants is set to show similar results to the PWC report. The Aer Rianta chairman, who retires in September after 10 years in the job, added: “Aer Rianta is a great company, recognised throughout the world as one of the best airport operators.

“And I understand a lot of that will go in the break-up with disposal of assets on the agenda.

“I would be very sorry to see that happen.”