Govt 'won't intervene' in Aer Lingus Shannon pull-out

The Government tonight dismissed calls from a senior Cabinet minister to force Aer Lingus to reverse its controversial cutback plan at Shannon.

The ending of the profitable Heathrow service has sparked massive objection in the Mid-West, a planned 48-hour pilot strike and the potential loss of €100m in local investment.

In a statement on behalf of the Government, Minister for Education Mary Hanafin expressed disappointment but said the ending of the London link was purely business.

“As a listed plc, Aer Lingus has to take its own decisions,” she said. “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.”

Her Cabinet colleague, Minister for Defence Willie O’Dea had insisted the Government should, if necessary, use its 25% stake in Aer Lingus to overthrow the Shannon pull-out.

He did, however, accept state interference in the airline it privatised only last autumn could damage share prices and undermine management.

“If, as a last resort, it comes to an EGM and the problem isn’t resolved, then obviously the Government should, in my view, use its votes to ensure the connectivity between Shannon and the rest of the world is maintained,” Mr O’Dea said.

The Limerick East TD was one of around 100 Fianna Fáil politicians from throughout the west coast who met at Shannon last night over the controversy.

Ms Hanafin said the airline was floated to allow it to grow and compete effectively in the highly competitive aviation market.

“Ireland’s interests are best served by dynamic competition, with Aer Lingus as a strong player,” she said.

Shannon Airport Authority revealed it had written to Minister for Transport Noel Dempsey, asking him to personally intervene, in the national interest, to resolve the dispute.

The Government’s latest statement over the crisis is the clearest signal to date that such a move will not happen.

Aer Lingus announced more than a week ago it would end the Heathrow-Shannon routes, using the valuable slots for a new service to the London hub from Belfast.

The Irish Airline Pilots Association (Ialpa) – a branch of the Impact trade union – threatened a 48 hour stoppage from next Monday at midnight over claims Belfast-based staff would be paid less.

Democratic Unionist MP Jeffrey Donaldson warned any reversal of the move, following intervention from the Government, would sour north-south relations.

There have been widespread calls for an EGM to debate the plan but without the Government’s support there is no prospect of a voting bloc being formed to halt the Shannon pull-out.

The airline’s chief executive, Dermot Mannion, will hold a series of meetings in the Mid-West tomorrow with Clare County Council, Shannon Airport Authority and lobbyists from the influential Irish Business and Employers Confederation (Ibec).

Afterwards, he is expected to face a fiery reception with representatives of the new Mid-West coalition Atlantic Connectivity Alliance.

The airline’s Employee Share Ownership Trust (Esot), which holds 12.5% of the company, is also seeking a meeting with Aer Lingus chiefs.

In a statement, the Esot said it was very concerned at the decision and was conscious of the need to protect the value of the Aer Lingus brand.

An offer of talks has been made by Impact but the airline refuses to entertain it with the strike threat hanging overhead.