Separation of three main airports delayed over downturn

THE Department of Transport has postponed the break-up of the country’s three main airports for up to three years because business plans for the three locations have gone out of date.

According to Government TD Michael McGrath, who has met with Transport Minister Noel Dempsey to discuss the issue, the changing economic circumstances meant plans submitted months ago are no longer an accurate gauge of the impact of separation.

“The economic situation is not favourable,” said Mr McGrath. “Passenger numbers are going to be under considerable pressure in the current climate both for the remainder of this year, next year and for the foreseeable future. Passenger numbers drive the revenue growth in airports.

“It is true to say the business plans were prepared in a more benign climate and do not stand up to robust scrutiny at this point in time. It is important that the break-up would have certainty. A delay would allow the boards to work within a framework for a defined period of time and I think that is what the minister has in mind.”

He said the business plans have been prepared for some time and while they have been updated, events have changed very quickly.

“The minister would be unwise now to base a decision on a plan which was prepared in an altogether different climate and he was conscious of that,” he said.

“I think the current period is so uncertain that a decision was taken to park it for now to give the airports some certainty during the intervening period.

“The ultimate objective is still full separation and that would be my aspiration as well. I think that in the long-term it is in the best interests of the airport.”

The expected announcement has been given a mixed response, with opposition TDs accusing the Government of reneging on promises to give the regions autonomy.

Meanwhile, SIPTU has welcomed plans to delay what it described as the “PD-inspired” break-up, saying Ryanair would have been the only beneficiary.

SIPTU regional secretary Gene Mealey said the move ensured the future of Cork airport.

“It was never a good idea. It was a PD-inspired project designed to promote the Ryanair agenda. The only potential beneficiary was Ryanair, which would then have been in a position to dictate conditions to every airport in the country.

“Subsequently it became clear that the proposal was unsustainable,” he said.

“Whatever argument there was five years ago in the midst of the boom when, to quote Mary Harney, the country was “awash with money”, to go through with the break-up of the company, it would be sheer, unadulterated madness to think of doing it now.”