SIPTU: We warned Government two years ago

THE Government was warned two years ago that the privatisation of Aer Lingus could lead to valuable Heathrow slots being sold, leased or allocated to new hubs, the SIPTU trade union claimed last night.

The union — which has 30,000 members in the Shannon Airport catchment area — said it was angry that it had been proved correct as predicted.

Joe Cunningham, SIPTU’s western regional secretary, said his office has been inundated with calls from workers in local and multinational companies who are fearful for their jobs.

“We have 30,000 members in the Shannon airport catchment area and it is just not acceptable for the Government to walk away from a problem that was ultimately of its own making,” he said.

“If companies such as Element 6 were to withdraw from the region because of the loss of connectivity with Heathrow it is our members who will be among those bearing the consequences.”

Mr Cunningham pointed out that IBEC had carried out a survey and found that in the Limerick region alone there were 20 companies which were in difficulty because of the Aer Lingus decision.

“The Government just do not seem to realise the strategic importance.”

The SIPTU’s western regional secretary went on to say that even though Aer Lingus insists the Department of Transport was only informed of its decision last Friday the reality was that the airline could not make a decision of that magnitude without “getting the nod from the Government at the highest level”.

He also criticised the Government and in particular its local Minister Tony Killeen for claiming they would try to get some other airline to step in and take on the Shannon-Heathrow route.

“What is critical is that the slots in Heathrow remain linked to Shannon. No comfort can be taken from short-term links. The likes of British Airways are going to get more value out of their valuable Heathrow slots by going to a more lucrative location, such as France. No employer is going to invest such assets in an uncertain future.”

He said when the union published its own analysis of the Aer Lingus privatisation proposals in 2005 it addressed the wider implications of selling the national carrier in some detail.

In that report it said:

* The Heathrow slots are worth a lot of money and could be asset-stripped by a new buyer. These slots, which are effectively landing rights, are sold in a “grey market” — even though they are not actually “owned” by the airlines. It is highly unlikely the Government would be able to separate the slots from Aer Lingus in any transaction.

* If new owners sold off these slots or allocated them to another part of their operation, Aer Lingus customers could find themselves flying into Stansted and Luton.

“We particularly highlighted the danger of the valuable Heathrow slots being sold, leased or allocated to new hubs and the importance of connectivity for the Mid-West in terms of tourism and the corporate sectors,” said Mr Cunningham.

“Unfortunately those predictions are being proven to be all too accurate.

“Hopefully the Government will accept it has a role to play as well.”