Shannon Airport faces change to ensure survival

SHANNON DEVELOPMENT yesterday called for a new independent public body to run Shannon Airport, after a year which saw the net loss of 698 jobs in the region.

The agency has also decided to support replica famine ship, the Jeanie Johnson. Shannon Development has backed the Jennie Johnson project with an investment of 190,000.

Shannon Development chief executive Kevin Thompstone said with 6,000 seats cut per week at Shannon, there was a need for a new approach to ensure the survival of the airport as an engine for tourism and industrial growth in the west of Ireland.

While companies supported by Shannon Development created 1,810 new jobs last year, there were, however, 782 job losses at Shannon Free Zone and 1,726 by indigenous companies.

“Airport policy should be driven by national and regional economic considerations, and this is why Shannon Airport needs a new structure for the 21st century,’’ said Mr Thompstone.

“The current ownership regime was designed more than 30 years ago and while it has been effective, it is now questionable as to whether it is an appropriate structure to meet the rapidly changing environment. The airport now needs to be run by a newly formed independent regional public body, led by a board with strong commercial, financial and aviation expertise. This is consistent with Government policy of achieving better balanced regional economic development, and with international best practice in locations such as Canada and Denmark,’’ he said.

“Our tourism and industrial customers tell us that air access is a critical factor for both tourism and industrial growth in the Region. Overseas tourists account for the majority of air services into Shannon Airport, 7 out of 10 passengers are flying for holidays and leisure purposes.

The availability of air services, which are tourism driven, is one of the prime reasons that industries choose to locate in the Shannon Region, which illustrates the interdependence between tourism and industry when it comes to air access.

The lack of good transport links and broadband telecommunications networks are other issues which our customers are highlighting,’’ he added.

The availability of world class broadband telecommunications infrastructures and services was critical in the investment location decisions of firms.