Cut in US flights ‘huge blow’ to economy of mid-west

A SUBSTANTIAL reduction in the number of US flights in and out of Shannon Airport could influence the decision of American companies thinking of locating in Kerry or in the mid-west, IBEC regional director Chris O’ Donovan has warned.

Cut in US flights ‘huge blow’ to economy of mid-west

He also said such a reduction in air services could have a negative impact on tourism in the region.

Addressing the annual general meeting of Kerry IBEC, he said having less services would also be a huge blow to the many companies operating in the south and west.

“Already, there are indications that at least one American transatlantic carrier will leave Shannon this autumn,’’ he stated.

Mr O’Donovan said it was likely that Shannon would have services to only Boston and New York on a year-round basis in the future.

“This will be a huge blow to the many companies who operate to the other regions of the United States and will also have grave implications for attracting new US investment to the region,” he said.

The IBEC director further warned that the change in the requirement for US flights to stop over in Shannon could also have huge knock-on effects for tourism in Kerry, with tour operators using Dublin as a base from which to organise day trips to other parts on the country.

Mr O’Donovan welcomed the Government’s commitment to the long-awaited Castleisland bypass, which he described as a vital piece of infrastructure for north Kerry.

“The bypass will reduce local congestion, improve road safety and promote economic development in the town centre. It will also provide links to the Atlantic Road Corridor. With improved access and effective connections to the Atlantic Corridor, Kerry will improve its attractiveness as a location for foreign direct investment,” he said.

Meanwhile, Tourism Minister John O’Donoghue said the recently-agreed Open Skies agreement, which would open further air routes to and from the US, was a major boost for Irish tourism.

He also said new regional tourism structures under the five new regional tourism development boards would help attract more visitors to the regions. Grants totalling €86 million have been allocated to the country’s six regional airports, with €18m going to Kerry Airport for a major upgrade and expansion.

Nationally, a growth target of 5.6% in overseas visitor numbers has been set for 2007 and the aim is to achieve the 10 million visitor growth target by 2012.

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