Shannon-US deal safe for now, says Brennan

TRANSPORT Minister Séamus Brennan said yesterday it appeared Shannon Airport was not immediately affected by a ruling by Europe’s highest court against one-to-one deals between national governments and the US.

The ruling should finally open up transatlantic routes between Europe and the US leading to greater competition and lower air fares.

It will also make it easier for Europe’s ailing airlines to merge and allow the European Commission to represent all member states in their negotiations with the US.

But now any European airline can challenge the exclusive right the Irish Government has given to the US to fly from Ireland. The current deal involves a stop-over at Shannon.

A European Commission spokesperson said the ruling offered both opportunities and challenges for Shannon but said they would not be taking any immediate action on the stopover.

Mr Brennan said: “It is important to stress at this stage that Ireland was not one of the eight EU members states involved in this action. The ruling does not apply to any of Ireland’s bilateral air service agreements.”

Mr Brennan said Brussels may now be forced to seek an “open skies” agreement with the US following the ruling, but this would be fiercely resisted by the Government.

Fine Gael transport spokesman Denis Naughten urged the Government to clarify the effect of the ruling and, if necessary, seek an exemption for Shannon airport from the decision.

He said: “It is imperative that the Minister for Transport seeks protection for the airport on the basis of balanced regional development. The decision, as it stands, is potentially catastrophic for Shannon and the region as a whole.”

Most EU countries, including Ireland, have agreements with the US that prevent any airline except the national one from flying to the US.

The court ruled this discriminated against other EU airlines and, as a result, other carriers may apply to fly to the US from Dublin, ignoring the deal giving the US exclusive rights on the route, together with Aer Lingus.

“The ruling, while not against Ireland, could have an indirect impact on Shannon. It creates a new situation and uncertainty but new opportunities and more potential,” said EU spokesperson Giles Gantelet.

Munster MEP John Cushnahan said it is imperative the Government maintains the Shannon policy as it is vital to regional development.

The EC brought the case against Austria, Belgium, Denmark, Finland, Germany, Luxembourg, Sweden and Britain, saying the open skies agreements with the US discriminate against airlines from other EU countries.

Under the agreements American airlines can fly freely into EU countries from anywhere in the US, but European airlines can only fly across the Atlantic from their home countries.