Bill to create Shannon hub to deliver jobs for airport

The Government has signed off on a bill to set up a new company to deliver jobs and Airline routes to Shannon airport.

The State Airports (Shannon Group) Bill 2014 will give effect to the Government’s decision to set up a new commercial State company in Shannon comprising Shannon Airport Authority and a restructured Shannon Development

The formation of the company follows the Government’s decision to separate Shannon Airport from the Dublin Airport Authority and bringing it together with Shannon Development to form a new commercial entity.

The goal is to turn Shannon into a world class aviation industry hub and support the restructuring of tourism and enterprise support agencies in the region.

Minister for Transport and Tourism, Leo Varadkar, said that the bill also contains legislation that will make Ireland more attractive to the aviation leasing industry by giving effect to the special insolvency regime which will specify a ‘waiting period’ of 60 days for insolvency-related events.

“If Ireland is to maintain its position as one of the top global centres for aircraft leasing, we must ensure that we do not fall behind the growing number of countries that have adopted this special insolvency regime for aircraft assets, including this 60-day waiting period which is similar to that under the US Bankruptcy Code.

“Essentially, what this will mean is that unless a default is otherwise remedied, a creditor will automatically acquire the right to repossess the aircraft asset after a period of 60 days. This will assist Irish airlines and the aviation leasing community in gaining access to more cost effective and wider sources of capital internationally and will also facilitate the issuance of aviation debt in Ireland,” Mr Varadkar said.

Minister for Jobs, Richard Bruton said: “This legislation will complete the restructuring of Government bodies in the Shannon region and help implement our plan to develop an aviation centre of excellence in the area.

“We have already started to see the benefits flow to the mid-west — I am convinced that with proper implementation of our plan new routes and new jobs will be at the centre of a new future for the Shannon region,” he said.