Varadkar: I won’t separate state airports and see them go bust

THERE is no point separating the three state airports “only to see one or two of them going bust in a short period” according to Minister for Transport Leo Varadkar.

Mr Varadkar confirmed that he has received submissions from the three state airports at Dublin, Cork and Shannon on the question of establishing separate airports under the State Airports Act 2004.

However, Mr Varadkar questioned whether the policy had been thought through. In the Dáil, he asked: “Was there ever a realistic prospect, given the fact that Cork and Shannon airports are losing so much money every year?”

Mr Varadkar stated that the submissions from the three airports are being carefully examined.

He said: “In the context of that examination, I am considering all available options for the future of Cork and Shannon airports. I hope to be in a position to make an announcement on the issue before the end of the year.”

Mr Varadkar said: “The critical issue is that, with falling passenger numbers, both Cork and Shannon are loss-making and would not be sustainable without the support of the Dublin Airport Authority (DAA). Given the current financial position of the DAA, this cross-subsidisation is not sustainable in the long term.”

The minister stated: “I favour separation and breaking up the DAA’s monopoly, but this can only be done on a sustainable basis.”

He said: “There is no point in appointing boards in Cork and Shannon if separation is not to proceed. I have received submissions from Cork and Shannon airports and from the DAA. It will take time, study and consultation with politicians and interest groups in the region before a decision can be made.”

Business plans for the three airports were forwarded to the Government in 2008 and separation was deferred in December 2008 as a result; with then-minister, Noel Dempsey, deferring a decision to 2011.

Earlier this year at a function at Bunratty, former chairman of the DAA, David Dilger confirmed that Shannon airport lost around €16 million in 2009 and 2010 and is on course to make a smaller loss this year.

Mr Dilger said that Shannon’s costs are too high and revenues too low, but stated that the airport “is well on the way to becoming sustainable”.

In its submission, it is understood that the DAA has said that it could not confirm whether separation of the airports would be financially viable in the current economic circumstances.

The DAA submission is believed to indicate that if in the future the Government decided to place the separation of the three airports back on the agenda then it could reconstitute the authorities in Cork and Shannon.

It is understood that the DAA has also maintained that, if the Government further delayed the separation of the three airports or decided not to proceed with the move at all, then the rationale for the continued existence of the Shannon and Cork boards would cease to exist.

In its submission, the Shannon Airport Authority (SAA) had proposed to Minister Varadkar that the Co Clare airport should be separated from the DAA and leased to a private company for a period of 15 to 35 years.