Brennan to create new Aer Rianta boards

TRANSPORT Minister Seamus Brennan is expected to press ahead with the appointment of three new Aer Rianta boards this Wednesday — despite the refusal of three current members to resign.

Board chairman Noel Hanlon and two other non-executive directors, Freda Hayes and Liam Meade have all indicated that they do not want to step down. All three directors are opposed to the break up of Aer Rianta but have told the Minister that they are prepared to implement his policy of creating three separate companies.

The minister could face legal action from any of these three if he sacks them and this could delay the implementation of the break-up of Aer Rianta.

Mr Brennan is expected to offer the Aer Rianta chairman a compromise deal that would allow Mr Hanlon stay on in his post for the next nine months, in return for a written guarantee that he will not frustrate the break-up of the company.

Then the minister is expected to make another attempt to convince Ms Hayes of Blarney Woollen Mills to transfer to the new Cork Airport Board and to get Mr Meade to go to the new Shannon Airport Board.

If Mr Hanlon accepts his deal, then both Ms Hayes and Mr Meade may agree to resign from the main board and accept the positions of deputy chairpersons on the Cork and Shannon boards.

None of the three directors could be reached for comment last night.

But industry sources claim that Mr Hanlon may accept the minister's face-saving deal to stay on as chairman for the next nine months especially since his term as chairman is due to end at the end of 2004 anyway.

Mr Brennan really needs Ms Hayes and Mr Meade to transfer to the new Cork and Shannon Boards if he wants to fill the main board with supporters of his plan.

Among the leading businessmen whom Mr Brennan is considering for his new independent boards are Jim O'Hara of Intel, Robbie McAdam of Analog Devices, Paschal Taggart, Michael B Lynch of Dell computers, Sean Fitzpatrick of Anglo Irish Bank and Limerick jeweller Tadhg Kearny who is the Chamber of Commerce representative on the airports' marketing committee.

Meanwhile, the minister and unions had a meeting before the weekend to discuss their opposition to the break-up of Aer Rianta.

SIPTU vice-president Jack O'Connor said the meeting was more substantive than he had expected. But he warned that unless the minister can give a guarantee on pay, pensions and job security, strike action will be taken.

"If the plans are not changed and we are not given specific assurances then I think industrial action in unavoidable," he said.