Shannon eyes corporate jet market

THE rich and famous could soon be flocking to Shannon as it aims to become a multi-billion euro hub for corporate jets.

Shannon is hoping to treble its business over the next five years as it is the only airport in the world with US pre-clearance for corporate aircraft.

So far, Ireland has failed to recognise the potential of this industry, according to an inter-national aviation expert.

Cork-born solicitor Aoife O’Sullivan, a partner with London-based aviation specialists Gates and Partners, said Ireland, and Shannon Airport in particular, has the opportunity to carve out a “major slice” of the multi-billion euro business aviation market by establishing a European hub for the sector.

Speaking at the first ever business aviation conference to be held in Ireland, Ms O’Sullivan said this market is “not by any means” about facilitating a wealthy family to take their corporate jet to Cannes for the weekend.

“There is a hugely lucrative market out there that is about efficiency in travel for the higher end of the business market. In 2007, it was worth €19.7 billion in gross value add to Europe and with relatively little effort, Shannon can become a European hub for the sector and corner a very significant slice of this,” she said.

The conference heard that Shannon Airport handled 1,700 corporate aircraft in 2010, an increase of 10% on 2009.

The airport has set a target of trebling this level of activity within the next five years, with the growth largely being driven by the pre-clearance facility.

Ms O’Sullivan said Shannon already has most of the pieces in place for this.

She said it is already on the radar of some of the world’s highest net worth individuals who have come through Shannon on corporate jets regularly in the past.

“It has very competitive aviation fuel prices and there is Ireland’s very favourable tax regime. Then you have Shannon’s strategic location as a gateway between Europe and the US,” she said.

“The airport has the added bonus of being an easy airport to get in and out of, which is so important for business aviation travellers, and has one of the longest runways in Europe, so it can pretty much facilitate any type of business jet,” she added.

Ms O’Sullivan said the Government must develop policy to encourage investment in the corporate jet sector. “So far, Ireland has not recognised the huge potential it has to capitalise on this area of aviation. If it had an aviation policy incorporating a proper focus on business aviation, there’s nothing to stop Shannon from becoming a business aviation hub for manufacturing, maintenance and service providers.

“What would flow from that could be hugely significant for the Irish economy, as it would make this region a shop-window for the top end of the corporate world and there would be a natural opportunity arising from that by way of foreign direct investment and tourism,” she added.