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Aer Rianta Break-up

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  • 13-11-2003 12:47am
    #1
    Registered Users Posts: 78,285 ✭✭✭✭


    http://home.eircom.net/content/irelandcom/topstories/1941575?view=Eircomnet
    Brennan says 'forces' trying to block Aer Rianta plan
    From:ireland.com
    Wednesday, 12th November, 2003

    The Minister for Transport, Mr Brennan, said yesterday "considerable forces" were working to undermine his plans to reform the State airports monopoly, Aer Rianta, writes Arthur Beesley, Political Reporter.

    Mr Brennan's admission that significant attempts were being made to block his plan to break up the company came after the second leak within a week to the Labour leader, Mr Pat Rabbitte - the latest in the form of a confidential Government document on Aer Rianta's future.

    The Minister's spokesman described the leak as "serious" after Mr Rabbitte read into the Dáil record parts of a Cabinet memorandum, the most confidential class of Government document with a circulation among Ministers, their advisers and senior civil servants.

    The disclosure of a classified document increased pressure on Mr Brennan to defend his plans after a report by PriceWaterhouseCoopers leaked last week to Mr Rabbitte predicted Aer Rianta's debt could rise to €400 million after the break-up.

    Mr Brennan's spokesman refused to speculate as to who might be behind the efforts to destabilise the plans, saying "the leaking of a confidential Cabinet document is a matter for the Cabinet secretariat to address".

    Mr Rabbitte said the memorandum showed the Minister for Finance, Mr McCreevy, had opposed giving the go-ahead to legislation to give effect to the break-up of the company.

    The memorandum noted Mr McCreevy said the break-up plans might have to be reviewed, as legal issues and questions about the company's share capital and regulation emerged.

    The memorandum, dated October 14th, said: "The Minister for Finance therefore considers that the drafting of heads of a Bill and the introduction of legislation at this stage is premature and, accordingly, is not in agreement with the decision sought. The drafting of legislation should be done when all issues are resolved."

    While Mr Brennan's spokesman made no attempt to question the quotation, he insisted Mr McCreevy had "made it clear both inside and outside the Cabinet that he is fully supportive of the restructuring measures".

    Mr McCreevy's spokesman declined to comment.

    Mr Brennan's spokesman acknowledged, however, that Mr McCreevy had sought "observations" on some outstanding "complex issues" such as capitalisation, the transfer of debts and the terms of employment.

    With the latest disclosure coming a year after Mr Brennan faced unsubstantiated allegations that he had left unpaid a bill for cigars and brandy at Aer Rianta, his spokesman said it was "clear that there are considerable forces opposed to the restructuring of Aer Rianta".

    He added: "Questions must be asked now about how, inside one week, a document deemed highly commercially sensitive has come out into the public domain, followed today by the even more serious issue of a highly confidential formal Cabinet document apparently being in the possession of Pat Rabbitte."

    Labour's press spokesman said the party would not disclose how the document came into the possession of Mr Rabbitte.

    But Mr Rabbitte said Mr Brennan had not fully disclosed to the Dáil, the public or Aer Rianta workers the extent of the advice he had received.

    Mr Rabbitte said in the Dáil the memorandum showed the public subsidies paid to the airports at Galway, Knock and Kerry would be threatened by the Aer Rianta break-up. The subsidies could be challenged on competition grounds because the Government had ruled out State support for Aer Rianta airports at Cork and Shannon once their debt was transferred to Dublin Airport.

    This was rejected by Mr Brennan's spokesman, who said the system of State subsidies on regional air routes was under review in a separate process.


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  • Registered Users Posts: 78,285 ✭✭✭✭Victor


    Confusion over inquiry into leaked Aer Rianta memo
    From:ireland.com
    Wednesday, 12th November, 2003

    There was confusion this evening over whether the gardaí were investigating the possible leak of a confidential Government memorandum on the future of Aer Rianta.

    The Taoiseach, Mr Ahern, earlier told the Dáil that the gardaí had launched an inquiry into how it was that the Labour Party had got its hands on the memo.

    However a garda spokesman this afternoon told ireland.com that no such investigation was taking place.

    Mr Ahern had complained that the Labour leader Mr Pat Rabbitte had used a certain "formula of words" which was only found in the Government document.

    He was referring to a contribution from Mr Rabbitte yesterday in which the Labour leader read into the Dáil record parts of a Cabinet memo which he said showed the Minister for Finance, Mr McCreevy, had opposed giving the go-ahead for legislation to break-up Aer Rianta.

    In today's leaders' questions in the Dáil the Labour leader responded to Mr Ahern's assertion that the gardaí were investigating the leak by saying he was sure that better use could be found for Garda resources.

    He accused the Government of being untruthful to the staff at Aer Rianta over its plans for the company and asked if Ryanair's chief executive Mr Michael O'Leary was pulling the strings.

    Mr Rabitte yesterday claimed the memo quoted Mr McCreevy as saying the break-up plans might have to be reviewed, as legal issues and questions about the company's share capital and regulation emerged.

    The memorandum, dated October 14th, said: "The Minister for Finance therefore considers that the drafting of heads of a Bill and the introduction of legislation at this stage is premature and, accordingly, is not in agreement with the decision sought. The drafting of legislation should be done when all issues are resolved."

    The Minister of Transport, Mr Seamus Brennan, made no attempt to dispute Mr Rabbitte's claims but a spokesman said Mr McCreevy had "made it clear both inside and outside the Cabinet that he is fully supportive of the restructuring measures.


  • Registered Users Posts: 19,608 ✭✭✭✭sceptre


    Hmmm, I'd be interested in finding out whether the cops are investigating or not. Following the usual rules of Yes Prime Minister, if they're not, someone at cabinet officially leaked it unofficially. Or should that be unofficially leaked it officially, I can never remember.

    Anyway, as Sir Humphrey adroitly comments, if you want to find out who did it, you call the special branch. If you don't, you have an internal enquiry.


  • Registered Users Posts: 78,285 ✭✭✭✭Victor


    Originally posted by sceptre
    Anyway, as Sir Humphrey adroitly comments, if you want to find out who did it, you call the special branch. If you don't, you have an internal enquiry.
    lol when reading this.

    http://home.eircom.net/content/irelandcom/breaking/1950863?view=Eircomnet
    Department sets up inquiry into leaked memo
    From:ireland.com
    Thursday, 13th November, 2003

    The Department of Transport has begun an investigation in to the leaking of a confidential Government memorandum on Aer Rianta to the Labour Party leader, Mr Pat Rabbitte.

    The leak, which revealed the Minister for Finance argued the drawing up of legislation for the break-up of Aer Rianta was premature, may result in a criminal investigation.
    A spokeswoman told ireland.com the secretary-general of the Department, Ms Julie O'Neill, was in the process of compiling all the "factual information" in relation to the document.

    She said only when the Department's own inquiry is complete will a decision be made on whether to involve the Garda.

    Ms O'Neill is working to ascertain how many copies of the memo were circulated and a list of everyone who received a copy.

    In a heated leaders' questions in the Dáil yesterday, the Taoiseach, Mr Ahern, and the Minister for Transport, Mr Brennan, clashed with Mr Rabbitte over the contents of the memo and how he got hold of it.

    Mr Ahern claimed the leak involved a criminal offence under the Official Secrets Act.

    The memo was prepared by Mr Brennan before he sought Cabinet approval for the introduction of legislation to break-up Aer Rianta.

    In the document the Minister outlines a number of concerns relating to the competitiveness of Shannon and Cork if other regional airport were receiving State aid.

    The memo also includes observations from the Department of Finance that warned it was premature to proceed with the drafting of legislation until an advisers' report had been received.


  • Registered Users Posts: 19,608 ✭✭✭✭sceptre


    She said only when the Department's own inquiry is complete will a decision be made on whether to involve the Garda.
    In other words, either they're not 100% sure that it wasn't a minister or they know it was a minister and it's a PR exercise.

    Heh, I'm glad I posted the comment in the post above now.


  • Registered Users Posts: 78,285 ✭✭✭✭Victor


    http://home.eircom.net/content/irelandcom/breaking/2310698?view=Eircomnet
    Aer Rianta unions in break-up talks with Department
    From:ireland.com
    Wednesday, 7th January, 2004

    Aer Rianta unions are in talks this evening with Department of Transport officials about the Minister Brennan's plans to break up the company.

    The talks are being chaired by Labour Relations Commission facilitator, Mr Tom Pomphrett, and are understood to be dealing with union concern about how the break-up will affect employment terms and conditions for staff.

    Both sides are due to meet for talks dealing the Shannon stopover and a second terminal for Dublin airport.at a later date.

    Aer Rianta unions have accused the Minister of being of misusing Exchequer funds in the breaking up the company.

    They claim Minister is deliberately ignoring the advice of consultants and Cabinet colleagues.

    However, Mr Brennan insists he is going ahead with the break-up and says he has the backing of the Cabinet.

    SIPTU's branch at Dublin Airport has called a staff meeting on Friday to brief members on today's talks with the department.


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  • Registered Users Posts: 19,608 ✭✭✭✭sceptre


    I wonder how their internal inquiry went then. And whether all of McCreevy's aides were able to account for their whereabouts;)


  • Registered Users Posts: 78,285 ✭✭✭✭Victor


    http://home.eircom.net/content/irelandcom/breaking/2319867?view=Eircomnet
    Aer Rianta unions meet to decide on action
    From:ireland.com
    Friday, 9th January, 2004

    The Aer Rianta group of unions are currently locked in discussions to consider their strategy over the proposed break-up of the company by the Minister for Transport, Mr Brennan.

    At lunchtime today, SIPTU held a members meeting at Dublin Airport to discuss the options available to them before entering the meeting at Congress.

    A joint decision from the unions on whether to take industrial action is expected later tonight.

    If industrial action is taken it would come at an embarrassing time for the Government as foreign dignitaries arrive in Dublin at the end of the month for meetings as part of Ireland's presidency of the EU.

    Speaking at Dublin airport this morning, the Taoiseach, Mr Ahern, said the best way forward for the unions was to continue the process of dialogue. He said industrial action would not harm the Irish presidency of the EU but could damage both the company and its staff.

    Union representatives said they were very disappointed at the outcome of Wednesday's talks with department officials regarding pay and conditions of employment for staff after the break-up.

    Last November Mr Brennan said the decision to break up the airport-management company was not for renegotiation, but that he was prepared to talk about employment issues such as job security and pensions.


  • Registered Users Posts: 78,285 ✭✭✭✭Victor


    http://home.eircom.net/content/irelandcom/breaking/2319867?view=Eircomnet
    SIPTU airport staff vote for industrial action
    From:ireland.com
    Friday, 9th January, 2004

    Major flight disruption at Irish airports could be looming as SIPTU members have voted for industrial action in their dispute over the break-up of Aer Rianta.

    The threatened industrial action is the latest move in a campaign of resistance to the Minister of Transport, Mr Brennan's plans to break up Aer Rianta.

    The unions have reacted angrily to his intention to split the state-owned firm into three separate companies at Dublin, Shannon and Cork airports. SIPTU leaders said the plan made no economic sense and would leave the two smaller airports struggling to survive.

    Around 250 members of SIPTU today mandated their leaders to prepare a campaign of strike action to disrupt Ireland's presidency of the EU.

    However, strike action is not inevitable as the workers do not represent the whole of the group of unions at Aer Rianta. Mandate, IMPACT and TEEU members have not voted for strike action.

    The Aer Rianta group, minus SIPTU, said in a statement this evening it had considered a letter by Mr Brennan and were encouraged by the fact that the letter contains a change from his previous position, "in that he has now committed himself to sharing 'essential financial and other information' with the ICTU group prior to the publication of any proposed legislation or debate in the Oireachtas."

    The union also welcomed the fact that the letter offered safeguards to staff on their job security, promising that there will be no compulsory redundancies. They said they would be considering this letter and whether to accept Mr Brennan's offer for further negotiations.

    Union representatives had said they were very disappointed at the outcome of Wednesday's talks with department officials regarding pay and conditions of employment for staff after the break-up.

    Last November Mr Brennan said the decision to break up the airport-management company was not for renegotiation, but that he was prepared to talk about employment issues such as job security and pensions.

    If industrial action is taken it would come at an embarrassing time for the Government as foreign dignitaries arrive in Dublin at the end of the month for meetings as part of Ireland's presidency of the EU.

    Speaking at Dublin airport this morning, the Taoiseach, Mr Ahern, said the best way forward for the unions was to continue the process of dialogue. He said industrial action would not harm the Irish presidency of the EU but could damage both the company and its staff.


  • Registered Users Posts: 78,285 ✭✭✭✭Victor


    http://home.eircom.net/content/irelandcom/topstories/2324439?view=Eircomnet
    Aer Rianta staff given assurances
    From:ireland.com
    Saturday, 10th January, 2004

    Union leaders were last night considering a new initiative aimed at averting industrial action over the planned break-up of Aer Rianta.

    They are now likely to seek renewed talks with the Minister for Transport, Mr Brennan, who yesterday offered new assurances about the future of Aer Rianta staff.

    The Minister wrote two letters yesterday to the general secretary of the Irish Congress of Trade Unions, Mr David Begg, seeking to defuse unions' anxiety over his plans for CIÉ and Aer Rianta.

    One letter followed a demand by the president of SIPTU, Mr Jack O'Connor, hand-delivered to the Department of Transport yesterday morning, that Mr Brennan clarify his position on CIÉ "within minutes".

    Mr Brennan replied shortly afterwards with a letter to Mr Begg restating his commitment to resolving the impasse over CIÉ through discussion with unions.

    Mr O'Connor's unusual demand followed a newspaper report yesterday suggesting that Mr Brennan remained committed to his privatisation plans for the Dublin bus market. His swift reply defused a potential crisis and meant a planned meeting with unions next week on CIÉ can go ahead.

    In a second letter to Mr Begg, the Minister said he wished to state clearly his "commitment to preserving the terms and conditions of Aer Rianta workers".

    Legislation effecting the break-up the company, he added, would ensure that lesser terms and conditions than those already existing could not be imposed on the workers.

    Mr Brennan also promised to make the financial information, on which the decision to break up the company was based, available to the unions in advance of any legislation.

    This was seen by union officials yesterday as a highly significant development, in light of their continual requests for the Minister to furnish a business plan on the airports' future.

    Members of SIPTU, however, were unaware of Mr Brennan's letter when they held general meetings at Dublin and Shannon airports at lunchtime.

    At the Dublin meeting, workers decided that industrial action at the airports should be resumed within two weeks. Particular anger was expressed at the failure of Department of Transport officials to provide satisfactory guarantees on workers' future pay and conditions, in talks with the unions on Wednesday.

    To the surprise of other Aer Rianta unions, SIPTU representatives then withdrew from a group of unions meeting scheduled for yesterday afternoon at the office of the Irish Congress of Trade Unions.

    Mr Michael Halpenny, national industrial secretary with SIPTU, said the decision not to attend was for "logistical reasons".

    He described the vote for industrial action as a "decision in principle" and said the intention was to minimise disruption to the travelling public and target instead Ireland's Presidency of the EU. SIPTU would attend a group of unions meeting next week, to co-ordinate plans.

    It is considered unlikely, however, that SIPTU would engage in industrial action at a time when other unions are pursuing a significant intervention by the Minister.

    Mr Arthur Hall of the TEEU said Mr Brennan's letter to Mr Begg amounted to a "180-degree turn" from his previous position.

    Unions now needed to sit down with the Minister to hear how he planned to implement the commitments he had given.

    "We have to give him that opportunity, although I would stress that it is his last opportunity," said Mr Hall.

    "If he cannot back up his commitments with action, then industrial action will be inevitable."


  • Registered Users Posts: 78,285 ✭✭✭✭Victor


    http://home.eircom.net/content/irelandcom/topstories/2324439?view=Eircomnet
    Aer Rianta staff given assurances
    From:ireland.com
    Saturday, 10th January, 2004

    Union leaders were last night considering a new initiative aimed at averting industrial action over the planned break-up of Aer Rianta.

    They are now likely to seek renewed talks with the Minister for Transport, Mr Brennan, who yesterday offered new assurances about the future of Aer Rianta staff.

    The Minister wrote two letters yesterday to the general secretary of the Irish Congress of Trade Unions, Mr David Begg, seeking to defuse unions' anxiety over his plans for CIÉ and Aer Rianta.

    One letter followed a demand by the president of SIPTU, Mr Jack O'Connor, hand-delivered to the Department of Transport yesterday morning, that Mr Brennan clarify his position on CIÉ "within minutes".

    Mr Brennan replied shortly afterwards with a letter to Mr Begg restating his commitment to resolving the impasse over CIÉ through discussion with unions.

    Mr O'Connor's unusual demand followed a newspaper report yesterday suggesting that Mr Brennan remained committed to his privatisation plans for the Dublin bus market. His swift reply defused a potential crisis and meant a planned meeting with unions next week on CIÉ can go ahead.

    In a second letter to Mr Begg, the Minister said he wished to state clearly his "commitment to preserving the terms and conditions of Aer Rianta workers".

    Legislation effecting the break-up the company, he added, would ensure that lesser terms and conditions than those already existing could not be imposed on the workers.

    Mr Brennan also promised to make the financial information, on which the decision to break up the company was based, available to the unions in advance of any legislation.

    This was seen by union officials yesterday as a highly significant development, in light of their continual requests for the Minister to furnish a business plan on the airports' future.

    Members of SIPTU, however, were unaware of Mr Brennan's letter when they held general meetings at Dublin and Shannon airports at lunchtime.

    At the Dublin meeting, workers decided that industrial action at the airports should be resumed within two weeks. Particular anger was expressed at the failure of Department of Transport officials to provide satisfactory guarantees on workers' future pay and conditions, in talks with the unions on Wednesday.

    To the surprise of other Aer Rianta unions, SIPTU representatives then withdrew from a group of unions meeting scheduled for yesterday afternoon at the office of the Irish Congress of Trade Unions.

    Mr Michael Halpenny, national industrial secretary with SIPTU, said the decision not to attend was for "logistical reasons".

    He described the vote for industrial action as a "decision in principle" and said the intention was to minimise disruption to the travelling public and target instead Ireland's Presidency of the EU. SIPTU would attend a group of unions meeting next week, to co-ordinate plans.

    It is considered unlikely, however, that SIPTU would engage in industrial action at a time when other unions are pursuing a significant intervention by the Minister.

    Mr Arthur Hall of the TEEU said Mr Brennan's letter to Mr Begg amounted to a "180-degree turn" from his previous position.

    Unions now needed to sit down with the Minister to hear how he planned to implement the commitments he had given.

    "We have to give him that opportunity, although I would stress that it is his last opportunity," said Mr Hall.

    "If he cannot back up his commitments with action, then industrial action will be inevitable."


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  • Registered Users Posts: 78,285 ✭✭✭✭Victor


    Air strikes threaten to take shine off EU gloss
    From:The Irish Independent
    Saturday, 10th January, 2004
    Gerald Flynn Industrial Correspondent

    WORKERS at Dublin airport are threatening to wreck an EU summit this month after backing industrial action in protest at plans to break up Aer Rianta.

    Around 250 members of SIPTU have mandated their leaders to prepare a campaign of action aimed at embarrassing the Government by disrupting flights carrying dignitaries and officials to the EU meeting on January 22 and 23.

    The workers voted for the action despite being effectively guaranteed jobs for life by Transport Minister Seamus Brennan.

    They were also warned by Taoiseach Bertie Ahern that their action would not damage the EU presidency but could harm the future of the company and its staff.

    The militant SIPTU members include firefighters, airport police and clerical and operative staff.

    Three other, smaller airport unions - Impact, Mandate and electricians' union TEEU - look set to formally accept an invitation to further talks after receiving the jobs guarantee from Mr Brennan.

    In a surprise move, SIPTU did not attend a meeting facilitated by the Irish Congress of Trade Unions last night to consider a three-part peace offer made by Mr Brennan to diffuse union anger.

    The official explanation to the other unions was that "SIPTU was unable to attend for logistical reasons".

    Under his plans to restructure Aer Rianta, Mr Brennan offered:

    * A jobs-for-life guarantee with no compulsory redundancies

    * Assurances that terms and conditions will not be lessened in the changeover

    * Access to all relevant financial information in advance of legislation being drafted.

    TEEU negotiator Arthur Hall described the offer as "a 180-degree move and we will need to get more detail on how it can be implemented and translated into legislation".

    Congress officials Liam Birney and Peter Rigney chaired last night's meeting. A formal response will be delayed until next Friday to allow time to dissuade SIPTU from its disruption campaign.

    Airport sources indicated the militant SIPTU aviation branch members were antagonistic towards the union's national industrial secretary and decided on disruption without considering Mr Brennan's conciliatory offer.

    One union source said: "Effectively the SIPTU civil aviation branch has done a solo run." But he queried how what was billed as an information meeting could agree to two days' of flight disruptions later this month.

    Impact aviation chief Michael Landers said the minister's letter "is essentially a new position and we need to take it up and tease out the exact details of what he is offering".

    The unions said "The minister needs to provide the ICTU group with information on how these commitments and other necessary guarantees on quality of employment, including those relating to pension rights, can be translated into legislation and sustained."

    The Government remains on a collision course with the main SIPTU transport union over its moves to force through restructuring of Aer Rianta as well as plans to privatise bus services in Dublin, Cork, Limerick, Waterford and Galway.

    At Dublin airport yesterday, the Taoiseach dismissed union threats that they could disrupt the EU presidency and impede gatherings of European politicians and senior officials.

    The unions are seeking assurances that their members' terms and conditions will be maintained in any restructuring arrangements.


  • Registered Users Posts: 78,285 ✭✭✭✭Victor


    http://home.eircom.net/content/irelandcom/breaking/2342417?view=Eircomnet
    SIPTU planning to disrupt arrival of EU ministers
    From:ireland.com
    Tuesday, 13th January, 2004

    SIPTU airport workers are to hold a two-hour stoppage next week, timed to disrupt the arrival of European Union ministers in Dublin for an EU Presidency conference.

    The action, being taken as part of the union's ongoing dispute with the Minister for Transport, Mr Brennan, over his plans to break up Aer Rianta, will affect Dublin, Cork and Shannon airports on the morning of January 22nd.

    The ministers are set to attend a top level conference hosted by the Department of Justice, Equality and Law Reform.

    "It is the first of a programme of limited industrial action focused on Aer Rianta's involvement in the EU Presidency and with a view to minimizing the impact on the travelling public," SIPTU's National Industrial Secretary, Mr Michael Halpenny said.

    "Today's decision arises from the ongoing failure of Aer Rianta and the Department of Transport to confirm reasonable guarantees on jobs, terms and conditions of employment and pensions, sought by the employees," he added.

    Mr Halpenny said the union would be escalating its industrial action on a fortnightly basis with other work stoppages directed at the EU Presidency.


  • Registered Users Posts: 6,163 ✭✭✭ZENER


    It's still beyond comprehension why the minister wishes to proceed with his plans ! Many other ministers and TD's have questioned the wisdom and rationale behind his decision.

    It does not make sense to break up a company which functions profitably as it is. Setting Cork and Shannon Airports afloat as individuals entities sounds like a great idea in theory. But when you consider that Dublin will be left with all the debt that the other two have accrued and will be left in a poor state financially it seems obvious that the plan is to make a case for selling off Dublin Airport as a single asset ! This will be required in order to service the almost €800 Million debt that will be sold to the public as a ball and chain around their necks !!

    This in turn will lead to many quality jobs being lost and the subsequent income to the local economy will suffer leading to indirect job losses.

    The only light on the horizon is the iminent ceasation of the Shannon stop-over which should encourage more transatlantic flights into Dublin but will that be enough ?

    tinky


  • Registered Users Posts: 78,285 ✭✭✭✭Victor


    I'm not sure tinky.

    If Cork and Shannon don't make money then there should be adjustments to their cost base to make them as profitable as reasonably possible.

    If the overall Aer Rianta organisation is profitable then presumably the majority of the profit is coming from Dublin Airport and foreign joint ventures (I wonder what happens to them). This means that Dublin Airport should be more capable of handling group debt by itself (tax treatment of capital investment aside), because it wouldn't be carrying the losses for Cork and Shannon.

    The second terminal in Dublin could upset this arrangement. Hovever potentially Dublin Airport gets split into an infrastructure company and a terminal company.


  • Registered Users Posts: 6,163 ✭✭✭ZENER


    If Cork and Shannon don't make money then there should be adjustments to their cost base to make them as profitable as reasonably possible.

    Are you suggesting that the government step in and subsidise them ? Surely that defeats the purpose of the breakup ?
    If the overall Aer Rianta organisation is profitable then presumably the majority of the profit is coming from Dublin Airport and foreign joint ventures (I wonder what happens to them). This means that Dublin Airport should be more capable of handling group debt by itself (tax treatment of capital investment aside), because it wouldn't be carrying the losses for Cork and Shannon.

    The fact that Dublin airport is profitable is a given, yes it helps subsidise Cork and Shannon is well known. The fact that Aer Rianta's borrowing is secured on all three airports is not so well known. If/when the breakup takes place then Dublin is on it's own with a startup debt of over 800 million euro !! Any capital investments in Dublin Airport will be crippled due to this. Financial institutions are not going to be as forth coming where the security , worth 600 million with a debt of 800 million, is concerned.

    This in turn puts Dublin airport at a disadvantage in that it can no longer finance futiure developments required to make the airport future proof! The outcome of this will be that Dublin airport, unable to invest in growth, will require private investment hence it will have to be sold to satisfy the tax payer.

    This leads to a situation similar to Eircom. Public money payed for the infrastructure but private enterprise benefits with no return to the public coffers !

    The second terminal is not really the fly in the ointment, so to speak, it will sooner or later be a necessity in order to service the eastern side of Ireland. Contrary to my work colleagues I believe a second terminal will work ! But it will become another monopoly if the main terminal is not there to compete with it due to the burden of debt from Cork and Shannon.


    Tinky


  • Registered Users Posts: 78,285 ✭✭✭✭Victor


    http://home.eircom.net/content/irelandcom/breaking/2358955?view=Eircomnet
    Brennan slammed as transport strike-threat remains
    From:ireland.com
    Friday, 16th January, 2004

    The threat of a simultaneous air, bus and rail work stoppage next week remains this evening following a meeting of transport unions.

    The Minister for Transport, Mr Brennan, was strongly criticised for failing to give sufficient assurances about the future of workers terms and conditions of work if plans to break up CIE and Aer Rianta are implemented.

    Unions met today amid signs that a softening attitude after Mr Brennan this week publicly assured staff at both companies that their jobs would be not jeopardised by his plan.

    But following today's meeting at Liberty Hall, the CIE joint strike committee and the Aer Rianta industrial action committee discussed a collective work-stoppage next Thursday to coincide with the arrival of EU home affairs and justice ministerd in Dublin for a major conference.

    "They were highly critical of Minister Brennan's proposals and the anticipated negative impact they would have on their fellow workers," said SIPTU national industrial secretary Mr Michael Halpenny.

    "They were also critical of the way in which the Minister and the Department of Transport have so far failed to deal with their members' concerns.

    The Minister and the Taoiseach have both moved in the past week to assure wokers at the companies that their jobs were safe but SIPTU have sought clarification on nine points in relation to the plan to make Aer Rianta's airports at Dublin Shannon and Cork - three separate entities.

    The Minister also intends to separate Bus Éireann, Iarnrod Éireann and Dublin Bus into autonomous entities.

    Today's meeting criticised the absence of a response from Mr Brennan and his failure to arrange a date for a meeting with CIE workers after their talks process broke up in acrimony last week.

    The committees will meet again soon to formulate a joint strategy and have not ruled out simultaneous industrial action, Mr Halpenny said.

    The planned two-hour stoppage at Dublin, Shannon and Cork airports remains scheduled for next Thursday, January 22nd.


  • Registered Users Posts: 78,285 ✭✭✭✭Victor


    http://home.eircom.net/content/irelandcom/topstories/2371481?view=Eircomnet
    Minister sends letter to reassure workers at Aer Rianta
    From:ireland.com
    Monday, 19th January, 2004

    Detailed assurances about the job security of Aer Rianta staff are to be provided today by the Minister for Transport, Mr Brennan, in a bid to avert a planned stoppage at Dublin Airport on Thursday, writes Chris Dooley, Industry and Employment Correspondent

    A letter from Mr Brennan is due to be delivered to the president of SIPTU, Mr Jack O'Connor, before lunchtime.

    Senior officials in the Department of Transport spent the weekend working on several drafts of the letter, which answers a range of questions posed by Mr O'Connor in a letter to the Minister last week.

    A spokesman for Mr Brennan said he was "hopeful" that today's response would provide sufficient clarification for SIPTU to call off Thursday's action. Union sources, however, expressed pessimism that the strike could be averted.

    The two-hour stoppage, from 8 a.m. to 10 a.m., is designed to embarrass the Government by disrupting flights carrying EU justice ministers and officials to a meeting in Dublin.

    Even if substantial guarantees about the future for Aer Rianta staff are provided by the Minister, Mr O'Connor faces difficulty in persuading strike leaders to call off the action. The union's Aer Rianta strike committee meets this afternoon.

    A source close to Mr O'Connor said last night the president was "enraged" that militant members of the union had "jumped the gun" in arranging Thursday's action.

    Mr O'Connor believes the organisers of the strike have played into the hands of SIPTU's opponents, and left him "wrong-footed in the public eye", said the source.

    However, the source emphasised that the SIPTU president would not seek to have the action called off on the basis of a "play on words" produced by Mr Brennan.

    "He has made it clear that he is prepared to do his damnedest to keep the airport open on Thursday, but only on the basis of commitments that are of real and substantial value to members."

    If the Minister's letter did not contain commitments of that quality, then Mr O'Connor "will throw his lot in with the militants".

    Unions are opposed to Mr Brennan's plan to break Aer Rianta into three management companies for Dublin, Shannon and Cork airports.

    Mr O'Connor says the action is about protecting job security and terms of employment, and is not a challenge to Government policy.

    The Minister has promised there will be no compulsory redundancies, and that the pay and conditions of staff will be protected.

    In his letter to the Minister last week, Mr O'Connor sought detailed assurances under nine separate headings about how Mr Brennan could substantiate those promises.

    One prominent union official expressed doubt last night that the Minister could provide the level of assurances sought.

    Mr Dermot O'Loughlin, secretary of SIPTU's civil aviation branch, said the guarantees would have to be "much more detailed and substantial than anything we've seen before" if they were to be accepted. He believed it was "more probable than possible" that the action would go ahead.

    Mr O'Loughlin brushed aside speculation that an action disrupting Ireland's EU presidency would incur the wrath of the Taoiseach, Mr Ahern, and cause SIPTU long-term difficulties. "We have never found the Taoiseach to be a vindictive man. He has always been union-positive."

    The Tánaiste, Ms Harney, said yesterday it would be "very disappointing" if the strike went ahead.

    "I believe it would be unacceptable for a small group of workers to go on strike simply because the Government is implementing a particular piece of policy," she said on RTÉ's This Week programme.

    http://www.breakingnews.ie/2004/01/19/story130224.html
    Brennan in final bid to avert air strike
    19/01/2004 - 8:22:46 am

    Transport Minister Seamus Brennan is reportedly planning to provide detailed assurances to SIPTU today in an effort to avert planned strike action by the union’s members in Aer Rianta.

    Reports this morning said Mr Brennan would deliver a letter to SIPTU president Jack O’Connor responding to questions he posed in a letter to the Minister last week.

    Mr O’Connor was seeking clarification of the Minister’s promise that no Aer Rianta workers would be compulsorily laid off during the planned break-up of the company.
    http://www.breakingnews.ie/2004/01/19/story130326.html
    O'Leary calls for army to implement airport contingency plan
    19/01/2004 - 5:23:28 pm

    Ryanair Chief Executive Michael O'Leary has called on the army to implement a contingency plan to keep the airports open on Thursday ahead of threatened industrial action by SIPTU members.

    Aer Rianta has given formal notice that they are not in a position to guarantee airport service from 8am to 10am this Thursday because of the likely disruption by security fire crews.

    The statement comes as media reports suggested that Transport Minister Seamus Brennan has moved to alleviate Aer Rianta workers' fears and has promised a 'jobs for life' package when the semi-state body is eventually broken up into three separate entities.

    O'Leary said today: "Very little is needed to keep Dublin Airport open next Thursday. All the Board of Aer Rianta have to do is to implement their own contingency plan.

    "If they don't, the Board of Aer Rianta should be dismissed. All of the airlines and handling companies will be operating the check-in, baggage and aircraft services as normal.

    "It is time the Government called in the army to maintain the security and fire services, and call a halt to these airport closures and trade union sabotage of Ireland's national interest," O'Leary added.

    The low fares airline chief executive also compared SIPTU's threatened industrial action on Thursday was similar to the stance it took over the deregulation of the taxi industry

    "Competition between the three Aer Rianta airports will lead to more jobs, not just at the airports but also in Irish tourism generally.

    "Why do SIPTU wish to block 5,000 new jobs?" O'Leary asked.


  • Registered Users Posts: 78,285 ✭✭✭✭Victor


    http://home.eircom.net/content/unison/national/2384438?view=Eircomnet
    Siptu workers take airport confrontation to the brink
    From:The Irish Independent
    Wednesday, 21st January, 2004
    Gerald Flynn Industrial Correspondent

    SIPTU workers broke up a meeting last night and adjourned until today without any decision on a threatened airport strike.

    The strike may still go ahead tomorrow.

    After meeting for more than 4½ hours, the militant aviation branch activists decided against lifting their threat to wreck the EU Summit and instead they opted for "a period of reflection".

    In a brief statement at 10.00pm last night, Siptu noted that the members had considered the Taoiseach's statement endorsing Mr Brennan's offers and also the statement issued earlier by the Aer Rianta board.

    Union officials had explained to the workers that they believe they have gained a significant advantage in their battle with Transport Minister Seamus Brennan over his plans for Aer Rianta.

    They have secured promises on jobs and pensions - pledges endorsed last night by Taoiseach Bertie Ahern. They appearred to amount to a guarantee of jobs should anything go wrong with Mr Brennan's plan to make the airports at Cork, Shannon and Dublin stand alone.

    But it was not clear if that was enough to halt the threat of strikes at the three airports tomorrow, which would disrupt the arrival of EU ministers and prove embarrassing for the Government in its role as EU president.

    Mr Brennan declined yesterday to further clarify his concessions, which the airport branches had asked SIPTU president Jack O'Connor to secure.

    They wanted a fixed timetable to implement the jobs and consultation promises and for Mr Ahern to underwrite and confirm the transport minister's offers.

    The Aer Rianta board stepped in and unanimously called for detailed business plans to be prepared about how the three airports might survive as stand-alone companies. That has been a key concern of Siptu and the other three airport unions.

    After six months of promised open consultation which produced little real information, Siptu's aviation branches were highly suspicious when they met at Dublin Airport on Monday and again yesterday afternoon.

    Early last week Mr O'Connor demanded nine points of clarification on the minister's outline proposal and assurances. These drew a response yesterday.

    http://www.rte.ie/news/2004/0121/aerrianta.html
    SIPTU resumes Aer Rianta talks
    January 21, 2004

    (12:30) SIPTU officials at Aer Rianta are meeting again to consider whether to call off tomorrow's planned two-hour stoppage at Dublin, Cork and Shannon airports.

    Last night, after a meeting lasting nearly five hours, it was decided to adjourn the discussion of proposals from the Minister for Transport, Séamus Brennan, aimed at averting the strike.

    Efforts had continued throughout yesterday to try to break the impasse over the planned break-up of the company

    SIPTU President Jack O' Connor sought clarification from Department officials regarding guarantees of job security and employment conditions.

    Meanwhile the Aer Rianta board voted unanimously in favour of completing business plans for Cork, Dublin and Shannon airports as stand-alone entities.

    The Department said full implementation of these business plans was a matter for the boards of the new airports.

    The Taoiseach, Bertie Ahern, also personally underwrote the guarantees given previously by Minister Brennan.

    SIPTU officials were to resume their deliberations at midday.

    Key stumbling blocks are understood to include doubts about the long term sustainability of Mr Brennan's guarantees along with a very significant loss of trust.


  • Registered Users Posts: 78,285 ✭✭✭✭Victor


    http://home.eircom.net/content/irelandcom/topstories/2384255?view=Eircomnet
    Minister rejects an Aer Rianta solution to impasse
    From:ireland.com
    Wednesday, 21st January, 2004

    An Aer Rianta move to bridge the gap between the Government and unions over the future of the State's airports was rejected last night by the Minister for Transport, Mr Brennan.

    As SIPTU leaders last night postponed a decision after six hours of discussions on whether to go ahead with a strike at airports tomorrow, Mr Brennan turned down a suggestion by the Aer Rianta board which it thought could resolve the current impasse. SIPTU will reconvene its deliberations today.

    The board, at a special meeting in Dublin, decided to propose to Mr Brennan that Aer Rianta and the Department of Transport should begin working on producing business plans for Dublin, Cork and Shannon airports as stand-alone entities. The lack of such plans is at the root of outstanding union concerns about the viability of the three airports, and the security of jobs, once Aer Rianta has been broken up.

    In a statement, the Aer Rianta board said that, on the basis of the proposal it had made, tomorrow's two-hour stoppage at the three airports, due to begin at 8 a.m., should be deferred. Within a short time of receiving the proposal, Mr Brennan had rejected it. He said business plans for the three airports were already being implemented under the existing Aer Rianta structure.

    However, the completion of plans for the three airports going forward must, in the final instance, remain the responsibility of the three new airport authorities, he said. "Such strategic plans can only be developed as the airports achieve full autonomy and have the freedom to develop independent plans and fresh strategies and initiatives."

    It is understood that Mr Peter Dunne, an Aer Rianta worker-director, relayed the board's proposal to the later SIPTU meeting. Whether Mr Brennan's swift rejection of the idea was also made known to the meeting could not be established.

    The two-hour stoppage was called by SIPTU with the specific aim of disrupting flights carrying EU justice ministers and officials to a meeting in Dublin. An Aer Rianta spokeswoman confirmed, however, that none of the ministers attending the event were due to fly in during the strike period.

    The threatened strike was described as "a bit of madness" by the Taoiseach, Mr Ahern, who called on workers to enter discussions with the Government on how pay and conditions could be secured after the break-up. "In most countries workers wouldn't get that privilege," he said.

    In an interview with RTÉ, Mr Ahern said it was for the Government to set out its policy, as it done in the case of the planned break-up of Aer Rianta, before sitting down to consult with workers.

    That had been done in this case and Mr Brennan could not go much further in the assurances he had provided. The Taoiseach also denied that an airport strike would embarrass the Government at a time it holds the EU presidency.

    Such actions were common in states holding the presidency and they frequently happened at airports, he said. "I can't think of a less original idea." Aer Rianta was advising passengers to contact their airlines and turn up for flights as normal. Dublin Airport is due to handle about 55 in-bound, and a similar number of out-bound, flights, carrying up to 7,000 passengers, during the two-hour stoppage. Knock-on delays could be expected for the rest of the day.

    Meanwhile, SIPTU's Dublin Bus branch executive will decide today whether to go ahead with a planned information meeting from 11 a.m. All Dublin Bus workers have been invited and disruption of services up to lunchtime would be likely.


  • Registered Users Posts: 78,285 ✭✭✭✭Victor


    http://home.eircom.net/content/irelandcom/topstories/2390216?view=Eircomnet
    Aer Rianta union calls off two-hour strike at airports
    From:ireland.com
    Thursday, 22nd January, 2004

    Today's threatened two-hour stoppage at Dublin, Cork and Shannon airports was called off yesterday by SIPTU after three days of deliberation.

    Assurances provided by the Government about the future pay and conditions and job security of Aer Rianta staff persuaded the union to call off the action and enter new talks.

    However, SIPTU president Mr Jack O'Connor said the union remained "deeply sceptical" about the extent to which those assurances could be sustained in the context of the planned Aer Rianta break-up.

    The Minister for Transport, Mr Brennan, plans to replace the company with separate management structures for the three airports. Unions claim it makes no financial sense to break up a successful State company, and that the job security of members is under threat.

    The two-hour stoppage SIPTU had planned was intended to disrupt flights carrying EU justice ministers and officials to a meeting in Dublin today.

    The decision to call off the action was taken yesterday after 15 hours of talks which begun on Monday and were attended by Mr O'Connor and the union's Aer Rianta representatives.

    In a statement, the SIPTU president said the assurances from Government about job security and quality of employment had been "thoroughly considered".

    He outlined a number of factors in the union's decision to suspend the action.

    These included the Government's commitment to provide key financial information to the unions, and its promise not to finalise legislation providing for the break-up until after talks had been concluded.

    However, Mr O'Connor said unions had previously deferred action on November 4th to enter into talks which had turned out to be "fruitless".

    "We must emphasise our determination to defend our members' right to take industrial action when necessary if what ensues after today fails to deliver tangible results within a reasonable time-frame."

    Mr Brennan said last night he would agree with Mr O'Connor that a new set of talks should be conducted within "a definite time-frame".

    Welcoming the decision to call off the strike, he said it was time to remind people that the policy Government were pursuing was about generating growth at the airports and creating jobs.


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  • Registered Users Posts: 78,285 ✭✭✭✭Victor


    http://www.thepost.ie/web/DocumentView/did-189469365-pageUrl--2FThe-Newspaper-2FSundays-Paper-2FNews.asp
    Aer Rianta's asset split

    Aer Rianta's considerable assets are unlikely to be divided between the three new airport authorities for some months after the vesting day of proposed airport authorities, writes Niamh Connolly.

    The transport minister Seamus Brennan referred in the Dáil last week to "technical issues" that could delay the passage of any legislation on the controversial Aer Rianta break-up plan.

    The technical issues are understood to refer to complexities relating to the division of assets between the proposed three airport authorities at Dublin, Shannon and Cork. It is believed the new authorities may be in operation for at least two months before the assets of the company have been fully apportioned.

    Aside from the airports and airports land, assets include Aer Rianta International, which contributes €13 million yearly to group revenues, and the Great Southern Hotels.

    Brennan has indicated his preference for the transfer of Aer Rianta International to Shannon Airport, but this is being fiercely resisted by unions at Dublin airport.

    Government legislation to incorporate the three new independent airport companies is set to be delayed beyond March, but Brennan indicated in the Dáil his intention for its passage by June, before the Dáil term ends.

    The delays are probably due to commitments given by Brennan to consult with unions, as well as to circulate consultants' reports on the financial aspects of the break-up plan.


  • Registered Users Posts: 78,285 ✭✭✭✭Victor


    http://home.eircom.net/content/irelandcom/topstories/2485931?view=Eircomnet
    Aer Rianta may be forced to sell hotels
    From:ireland.com
    Friday, 6th February, 2004

    Aer Rianta may be forced to dispose of Great Southern Hotels and its international assets to facilitate the reorganisation ordered by the Minister for Transport, Mr Brennan.

    Legal advice given to the Department of Transport by the Attorney General has confirmed significant legal obstacles to the break up of the company into three new airport authorities, The solution may require the sale of a number of subsidiaries to boost the company's financial reserves, according to sources familiar with the problem.

    The issue stems from Aer Rianta's conversion from being a statutory body to a public limited company (plc) in 1998. As a plc, Aer Rianta can only pay a dividend to its shareholder if it has built up sufficient profits to cover the dividend.

    Under the plan put forward by the Department of Transport to break up Aer Rianta, the assets of the company will be distributed to three new State-owned airport authorities for Dublin, Cork and Shannon.

    The Department's legal advice is that this will in effect constitute a dividend payment, because the beneficiaries of the asset distribution - the Government - is the shareholder of Aer Rianta.

    The problem arises because the value of the assets that are to be distributed - the three airports - significantly exceeds the company's accumulated reserves.

    According to Aer Rianta's 2002 accounts, it has accumulated profits of €200 million on its balance sheet, while the value of the airport assets to be transferred exceeds €400 million.

    The Department of Transport's advisers, PricewaterhouseCoopers and Matheson Ormsby Prentice are examining possible solutions to this problem. Options such as liquidating the company or putting it into examinership have been ruled out and the proposals being considered centre on boosting the company reserves either through internal "financial engineering" or the sale of some parts of the business. The break up of the company is now expected to take place in a phased manner rather than the "big bang" approach originally envisaged.

    The Great Southern Hotel group is valued at around €200 million. It made profits after tax of €3.9 million in 2002 on a turnover of €43 million but, in common with other hotel groups, is facing a difficult trading environment. Under the break up plan announced last summer, ownership of the hotel group was intended to be transferred to the Dublin airport authority, which is to assume all of the Aer Rianta group debts of more than €400 million.

    Aer Rianta International had a turnover of just under €47 million in 2002. It manages airports and duty-free business overseas as well as investing in other airports.

    Through it, the company holds stakes in Birmingham, Dusseldorf and Hamburg airports plus duty-free operations in Montreal, Kiev Bahrain, Moscow, St Petersburg and Athens.

    Speaking last week in the Dáil, the Minister for Transport, Mr Brennan, acknowledged the extent of the difficulties.

    "Aer Rianta is a public limited company and there are plc rules as well as EU regulations surrounding the maintenance of capital. We are working our way solidly through those complicated issues. The consultants are helping us implement them."

    The Minister added that he expected to meet the deadline of this summer for the reorganisation of the airports.

    The three authorities are intended to operate independently and compete with each other for business.


  • Registered Users Posts: 78,285 ✭✭✭✭Victor


    http://www.thepost.ie/web/DocumentView/did-654215461-pageUrl--2FThe-Newspaper-2FSundays-Paper-2FNews.asp
    Former BAA head joins board at Dublin Airport
    08/02/04 00:00
    By Niamh Connolly

    A former British Airports Authority (BAA) supremo is to be appointed to the board of Dublin Airport, The Sunday Business Post has learned.

    The appointment of Mike Hodgkinson, former chief executive of the world's largest airport authority, is expected to be announced by Minister for Transport Seamus Brennan within the next two weeks.

    Brennan is believed to be finalising the designate members of the Dublin Airport Authority board, which will be incorporated as part of the break up of Aer Rianta.

    Hodgkinson's agreement to join the new authority will be viewed as a coup for Brennan, who has indicated his intention to appoint business and aviation experts to the three new independent boards at Dublin, Shannon and Cork.

    Hodgkinson held the top post at BAA for four years from 1999 until last May. He spent 11 years with BAA, a plc with a management portfolio that includes Heathrow, Gatwick, Stansted, Ealing, Aberdeen and Southampton airports. BAA also has management contracts in 12 countries, including Australia and a number of US airports.

    The 59-year-old formerly spent nine years in charge of Grand Metropolitan's food empire, and 18 years in the motor industry, heading Land Rover and Range Rover.

    He chairs the finance committee of Transport for London, established under Mayor Ken Livingstone, and was appointed chairman of Royal Mail in Britain last May.

    His transport experience includes a directorship of the Commission for Integrated Transport and chairmanship of the Airports Advisory Council. He is a director of international manufacturing group FKI plc, with interests in engineering, hardware and material handling services.

    There has been speculation that political sensitivities in the run-up to June's local and EU elections, the legal complexities surrounding transfer of Aer Rianta assets and the volume of legislative work before the Dáil could delay the break up of the state company until July at the earliest.


  • Registered Users Posts: 78,285 ✭✭✭✭Victor


    http://www.rte.ie/news/2004/0220/aerrianta.html
    Aer Rianta break-up proposals emerge
    February 20, 2004

    (21:11) The Department of Transport has set out more details of its plans for the proposed break-up of Aer Rianta.

    In a framework document presented to the Aer Rianta Board, and which has been seen by RTÉ News, officials propose the existence of three independent airport authorities at Dublin, Cork and Shannon.

    The document sets out the Department's preferred framework within which it would like to advance the implementation of the restructuring at Aer Rianta.

    The document says legislation to implement the restructuring will provide for the existence of three independent authorities.

    It states that there is a need to prepare revised medium to long term financial projections for Cork and Shannon airports as standalone entities prior to the finalisation of legislation.

    It also says there is a need to prepare 10-year revised financial projections for Dublin Airport based on alternative scenarios, involving the transfer of Cork and Shannon first.

    The department document says 'the financial forecasts for Dublin should not factor in the consequences of any potential Government decision to approve the construction of a second independent terminal at the airport'.

    These revelations are likely to draw an interesting response from Aer Rianta trade unions who have suspended industrial action pending the outcome of more talks on the future of the state airports.


  • Registered Users Posts: 78,285 ✭✭✭✭Victor


    http://home.eircom.net/content/irelandcom/topstories/2584755?view=Eircomnet
    Brennan studies new proposals to break up Aer Rianta
    From:ireland.com
    Saturday, 21st February, 2004

    New proposals may allow the Minister for Transport, Mr Brennan, to move ahead with his plan to split up Aer Rianta and have the State's three main airports run independently of each other. Barry O'Halloran reports

    The proposals, which are being studied by Mr Brennan, are designed to get around legal obstacles to his plan.

    They would involve shelving plans to sell the authority's Great Southern Hotel group pending a review, and dividing up Aer Rianta International (ARI) between Dublin and Shannon airports. They also suggest that the Dublin Airport Authority fund part of the development of Cork's new €60 million terminal.

    Consultants PricewaterhouseCoopers and solicitors, Matheson Ormsby Prentice (MOP) drew up the proposals and submitted them to the Department of Transport in a confidential document seen by The Irish Times.

    The Department hired them when Mr Brennan's plan to break up Aer Rianta into three separate airport authorities for Cork, Dublin and Shannon, hit unforeseen legal obstacles related to Aer Rianta's status as a public limited company (plc).

    The law forbids the distribution of a company's assets when the amount exceeds its reserves. Aer Rianta has €200 million in accumulated profits on its balance sheet, but the value of the assets to be distributed comes to €400 million.

    Under the proposals the break-up, due to happen before the end of the year, would be triggered by the payment of a dividend from Aer Rianta International - a subsidiary company which has a profitable business running international airports - to Aer Rianta.

    This would help to boost Aer Rianta reserves. Then the document states that the "first airport", understood to be Shannon, should be transferred to its independent authority.

    Aer Rianta, which at that point will become the Dublin Airport Authority, will continue to own and operate a "second" airport, Cork, for an unspecified period. During this time, Cork's authority will have an advisory role in its operation.

    The document states that once Cork is passed into the control of its authority, Dublin Airport Authority/Aer Rianta should pay for the development of Cork's new terminal. Cork would then repay this by renting it from Dublin as part of a finance lease.

    Building work on the terminal is already under way, and it is due to be completed at the end of 2005 at an estimated cost of €60 million. The document states that Cork can only be handed over once Dublin Airport/Aer Rianta, has enough cash reserves to allow this to happen. In order to build up these reserves, it indicates that a steering committee established to oversee the break-up should look at the possibility of selling some assets.

    "In this regard the steering committee should investigate the potential for realisation of capital assets in order to provide the necessary reserves," the document says.

    The Minister is known to have considered the sale of both Great Southern Hotels and ARI in order to realise the cash needed for the plan. However, the consultants say that Dublin Airport Authority/Aer Rianta, should keep the hotel chain "pending a strategic review of its funding and asset ownership requirements".

    It states that Dublin and Shannon should get joint ownership of ARI's duty free shops, which it operates in a number of centres, including Moscow Airport.

    It says that its airport business - it owns stakes in Birmingham, Dusseldorf and Hamburg airports - should remain with Dublin Airport Authority/Aer Rianta.

    The consultants also propose that landing and handling charges at Cork and Shannon airports should not be regulated by the Commission for Aviation Regulation (CAR).

    Currently, the CAR determines what all Aer Rianta airports should charge. If the Minister decides to accept these proposals, then the speed at which the break-up goes ahead will depend on how quickly the necessary legislation is passed. Neither the Department nor Aer Rianta would comment on the proposals last night.


  • Registered Users Posts: 78,285 ✭✭✭✭Victor


    http://www.rte.ie/news/2004/0312/cie.html
    Ryanair in bid to stop airports' closure
    March 12, 2004

    (22:45) SIPTU has confirmed that Ryanair has served papers on the union seeking an injunction preventing strike action taking place at Dublin, Shannon and Cork airports on Thursday next.

    Ryanair claims the move will disrupt tens of thousands of passengers.

    This evening the union said it would respond to the action in the High Court next Tuesday.


    The union has also confirmed that former president of the Irish Congress of Trade Unions, Phil Flynn, is to intervene in the dispute.

    SIPTU said it is willing to consider any proposal to help resolve it.


  • Registered Users Posts: 78,285 ✭✭✭✭Victor


    http://www.rte.ie/business/2004/0416/aviation.html
    Aer Rianta legislation 'by summer break'

    April 16, 2004 11:37
    Transport Minister Seamus Brennan has said he expects legislation on the break-up of Aer Rianta to be enacted before the Dail's summer recess. He told RTE radio he hoped the legislation would be before the Dail in the next few weeks.

    Minister Brennan added that he was still 'fully committed' to the idea of a second terminal at Dublin Airport.

    He was speaking on his arrival from the US, where he met US Secretary of State for Transport Norman Mineta.


    The Minister said the first part of an 'open skies' agreement between the US and the EU could be agreed by October of this year. Open skies would remove all restrictions on European airlines flying to the US, but it is also likely to have implications for the Shannon stopover.

    The Minister said he understood it would be a two-stage agreement. EU transport ministers will be asked to agree on the first step - dealing with ownership of airlines and some access issues - in June. But he said the Irish Government would not agree to anything that would not give 'breathing space' to allow Shannon airport adjust to the new market.

    Also on RTE this morning, Ryanair chief executive Michael O'Leary said he always welcomed what the Minister said, but the problem was the delivery by the Government and the department. He said he would believe the legislation on Aer Rianta when he saw it, describing the position as 'more dither and fudge and drift' from a Government which was 'great at issuing press releases' but short on action.

    Aer Rianta chief executive Margaret Sweeney, speaking at a conference on European air transport in Dublin, said the company was working closely with the department on the restructuring, though the timing of the legislation was a matter for the department and the minister.


  • Registered Users Posts: 78,285 ✭✭✭✭Victor


    http://www.thepost.ie/web/DocumentView/did-770310502-pageUrl--2FThe-Newspaper-2FSundays-Paper-2FNews.asp
    Aer Rianta unions to receive company break-up proposals
    18/04/04 00:00
    By Niamh Connolly

    Aer Rianta trade unions will this week receive a business plan and financial projections for the break-up of the airport monopoly.

    The proposals have been drawn up by three government-appointed consultants - PricewaterhouseCoopers, and solicitors Matheson Ormsby Prentice and Steer Davis Gleave. They are expected to suggest the devolution of the company's operations on a phased basis.

    Minister for Transport Seamus Brennan said last week that he was pressing ahead with plans to enact legislation to create three independent airport authorities before the Dáil's summer recess.

    However, the privatisation of Aer Lingus may present unforeseen complications for Aer Rianta employees' pension fund. The national carrier, Aer Rianta and FLS employees share a common pension scheme.

    The Irish Airline (General Employees) Superannuation Scheme is understood to be under subscribed and will require top-up funding, either from the companies or the exchequer, before Aer Lingus is part-privatised.

    The division of Aer Rianta's assets and its €400 million borrowings have presented substantial difficulties for the consultants.

    Under the PricewaterhouseCooper plan, a dividend from Aer Rianta International would be paid to the parent company and Shannon Airport would become the first standalone entity.

    The plan involves postponing the sale of the Great Southern Hotel group and dividing up Aer Rianta International (ARI) between Dublin and Shannon airports.

    The consultant suggests that the Dublin Airport Authority should fund part of the development of Cork's new €160 million terminal.

    The trade unions last week criticised the Transport minister for setting a deadline for Aer Rianta's break-up before they had received the financial plans.

    The unions warned they had received assurances from Taoiseach Bertie Ahern that the legislation would not be enacted until they had formulated a response.


  • Registered Users Posts: 6,163 ✭✭✭ZENER


    This whole thing is destroying the moral among the staff at the Airport here in Dublin. I fear for the safety of any FF/PD candidates who canvas in the North Fingal area for the next election if this whole thing goes pear shaped ! They will certainly not be welcome at my door.

    In 20 or 30 years time there will be a tribunal set up to investigate this whole affair and it will discover the real reasons behind it - to line the pockets of several ministers and interested parties.

    The plan is being sold to the public under the disguise that the airports are losing money hands over fist and that they (us!) the tax payer is having to foot the bill. I am tired of informing stupid ignorant people of the FACTS, but I may as well talk to a wall. Even here on boards where you expect a modicom of intelligence there are people who arrive make the usual " Aer Rianta are ****e" statement and think they have done the world a favour. One of the biggest exponents of the plan is Ryan Air boss Michael O' Leary, he bul****s and people think it smells of roses ! His airline benefited from generous help and state aid back in the 80's when it looked as if it would fold and to hear him now you would swear that he was the untainted !!! Hypocrit !!

    The only people who will benefit from this will be the fat cats. Ultimately this will lead to a loss of jobs in the area of the three Airports. Most effected in my opinion will be Shannon Airport. The open skies initiative will see the current level of traffic fall away and unless the move the whole airport closer to a city no one will want to fly there ! Cork is in a great location and while it's main runway cannot be expanded (I think) it has an important role to play in that region.

    A second terminal at Dublin Airport could be a great facility - but not if it's only done for the sake of having it and to appease the likes of O' Leary. He will tell us that charges are too high - what he neglects to tell us is that the charges are set by the very commission he was instrumental in initiating !

    Anyway sorry for the rant but hopefully I can get people to see both sides of the story and not just the "Aer Rianta is ****e" side.

    ZENER


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  • Closed Accounts Posts: 1,028 ✭✭✭ishmael whale


    Originally posted by ZENER
    Most effected in my opinion will be Shannon Airport. The open skies initiative will see the current level of traffic fall away and unless the move the whole airport closer to a city no one will want to fly there !

    Hold that thought and consider the article below from a few years back. Dublin waits for a second passenger terminal needed now, while Shannon gets an investment of 40 million to cater for passengers that don't exist.

    If people don't want to fly to Shannon, close it. Pretending it has a future has only served to hamstring the development of trans Atlantic routes and diverted resources from more beneficial uses.

    http://www.limerick-leader.ie/issues/20000401/news07.html

    Saturday, April 1st, 2000

    Passenger figures at Shannon set to top 2.5 million
    By RON KIRWAN

    PASSENGER growth at Shannon looks set to grow by 25 per cent during the first quarter and reach 2.5 million by 2002, according to the Minister for Public Enterprise, Mary O'Rourke.

    Minister O'Rourke predicted the continuing passenger growth at Shannon Airport today during the official opening of Aer Rianta's £28.5 million terminal.

    The new building centralises all the Airport's amenities and brings together the departures and arrivals areas under one roof.

    A further £11.5 million has been invested in development of roads, car parks and parking areas.


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