Showdown looms over State’s plans for airports
The minister is planning to take part of Aer Rianta's profits from Dublin Airport and divert that money into the development of Shannon and Cork airports, a senior Government source confirmed last night.
The Cabinet will be asked to approve this next month along with proposals to take control of Cork and Shannon airports away from Aer Rianta and appoint autonomous boards to run them.
This is set to spark a major battle with Aer Rianta chairman Noel Hanlon. Over the last five years Aer Rianta has resisted all bids to dilute its centralised control in Dublin over the three airports.
On July 31 Mr Hanlon warned a private meeting of politicians and business people that Cork Airport would lose a 130m investment for a new terminal if the airport was made independent.
The depth of Aer Rianta's resistance to the proposals is seen in comments made by Mr Hanlon at a private meeting with the South West Regional Authority Cork Airport Consultative Committee on July 31. The minutes of that meeting, which have been seen by the Irish Examiner, state: "Mr Hanlon indicated that Aer Rianta was on the threshold of a very sizeable capital expenditure at Cork Airport and indicated the concerns of the board that it should proceed with caution, if there was a possibility of Cork Airport being moved from the portfolio of Aer Rianta.
"Mr Hanlon referred to calls for an independent board for Cork Airport and stated that his board did not have a particular difficulty with Cork Airport being granted autonomy, but if this was to occur, then Aer Rianta could not justify embarking on a very large capital programme.
"Mr Hanlon also asked the members to recall that funding for the airport development programme was not coming from the national exchequer, but from the resources of Aer Rianta."
Asked to comment on this veiled threat yesterday, an Aer Rianta spokeswoman said: "This was not a threat from a business point of view there was no logic in Aer Rianta investing in an airport if it was not going to remain within our group."
She would not comment on the minister's overall plans until they were announced officially.
Minister Brennan said yesterday the new Cork Airport terminal would go ahead and Shannon would continue to get its capital funding.
He stressed that Aer Rianta is a State-owned company.
"Cork and Shannon will continue to get the money for major capital projects to ensure they can compete effectively," Minister Brennan added.
Aer Rianta refused to comment on the Minister's plans yesterday until they are made official.
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