Aer Lingus decision to dominate Cabinet meeting

AER LINGUS’s decision to remove its Heathrow slots from Shannon Airport will dominate the first Cabinet meeting of the new political term today.

Aer Lingus decision to dominate Cabinet meeting

The Cabinet reconvenes after the traditional August holiday.

The Taoiseach and his ministers will consider a report by Government officials who were appointed to assess the impact on Shannon of the loss of the slots.

It is understood the report states Shannon is well connected despite Aer Lingus’s decision to transfer the Heathrow slots to Belfast. Such an assessment would tally with the views of Transport Minister Noel Dempsey, who refused to interfere with the Aer Lingus move, saying it was a commercial decision entirely for the company to make.

Defence Minister Willie O’Dea, who represents Limerick East, was an outspoken critic of the advice being given to Mr Dempsey.

“Noel is taking his own advice. In this situation, unfortunately, that advice does not convey the seriousness of the situation here [in the mid-west],” said Mr O’Dea.

The Defence Minister also accused Aer Lingus of being “sneaky” by announcing the decision while the Cabinet was on holiday, and claimed the company’s chief executive Dermot Mannion was acting like a “latter-day Oliver Cromwell”.

But in a clear rebuke to Mr O’Dea, a Government statement was issued supporting Mr Dempsey.

“As a listed plc, Aer Lingus has to take its own decisions. It is inappropriate for the Government to intervene in the decision-making of a private company. To do so would ultimately be damaging to the company and its customers.”

That is expected to remain the Government’s stance after today’s Cabinet meeting. The Government is likely to support airline management at the emergency general meeting called to discuss the move.

As a 25% shareholder in the airline, the Government’s support will be crucial to management in face of the opposition to the move by Ryanair, the largest shareholder in Aer Lingus with almost 30%.

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