EC to probe Aer Rianta break-up

THE European Commission will examine whether the break-up of Aer Rianta breaches EU rules when it receives details from the Government.

Fine Gael leader Enda Kenny said the deal to pass on the debts of Cork and Shannon airports to Dublin could be contrary to rules on state aid. He raised the issue yesterday with EU Transport Commissioner Loyola de Palacio when he met her in Brussels.

However, the commissioner’s spokesman, Giles Gantelet, said there are no EU rules about airports as they have always been considered to be infrastructural, like roadways.

“The commissioner had a superficial discussion with Mr Kenny on this issue and she said she does not have sufficient details of the proposal for her to make an assessment on whether this is a state aid issue.”

He said they spent two minutes during a 25-minute meeting on the issue and that it would be up to the Government to decide if it was a matter for the commission to consider.

Mr Kenny said the commissioner had confirmed it would consider if the proposal was contrary to state aid rules. “She does not have the Government proposal and will have to wait to see it,” he said.

They also discussed the ending of the Shannon stopover and its effects on the region.

Ms De Palacio told him she would not work against introducing arrangements to foster development at Shannon Airport, provided they were fair and non-discriminatory.

Ms De Palacio’s spokesman said there was no reason for Ireland to fear it would lose its direct flights with the US under the new flight arrangements to be made by the commission between the EU and the US.

Aer Lingus hopes that the new open skies arrangement will allow it to double the number of US airports it can fly from. Under the current agreement, negotiated directly with the US, Aer Lingus is permitted to land at only four airports. In return, half of all US airline flights land at Shannon.

This is expected to end under the new arrangement.