[Hyperbole] 'Low-cost airline could boost Shannon'

Victor

http://home.eircom.net/content/irelandcom/topstories/3027745?view=Eircomnet

'Low-cost airline could boost Shannon'
From:ireland.com
Saturday, 17th April, 2004

The Minister for Transport, Mr Brennan, has said Shannon Airport would be significantly boosted if a low-cost airline would agree to start operating transatlantic routes.

Mr Brennan told a conference in Dublin that a budget airline operating out of Shannon would be ideal. He said there was huge scope for some airline to take advantage of this opportunity.

"It is only a matter of time before an entrepreneur launches a budget transatlantic service, possibly from Shannon," he told the Future of European Air Transportation conference in Dublin.

The conference was organised by the Federation of Aerospace Enterprises in Ireland, a division of IBEC.

Asked by reporters afterwards whether he had any information on what airline might take on this project, he said he did not.

"I am trying to encourage the idea," he said. "There has to be scope for some low-cost operator to look at the economics of the transatlantic," he said.

He said as many people wanted to make short trips to the US nowadays as they did to European destinations.

Mr Brennan said Shannon had a bright future under State ownership but with strong, independent and visionary leadership.

"It is about new beginnings, new business and marketing strategies, new pride in the regions, more jobs and more growth.

"There are people who say to me on airports policy: 'If it's not broken, why fix it?' To them I say take a closer look, there are cracks appearing," he added.

"To these people with their dire warnings, I think it is worth recalling that, back in the 1980s when Ryanair was looking for a foothold on the aviation ladder, I was warned that if I gave Ryanair access to Aer Lingus routes I was sounding a death knell for our national airline."

Mr Brennan said Shannon should not fear negotiations on ending the stopover policy for Irish and US airlines. He said any deal that emerged would include some kind of protection or "breathing space" for Shannon.

The Minister said he hoped to have legislation for the break up of Aer Rianta into autonomous entities with the Dáil before the summer.

However, Ryanair criticised this statement yesterday and said there had been major slippage in the timetable for the break up of Aer Rianta and the planning of a second terminal for Dublin.

Ryanair chief executive Mr Michael O'Leary said: "Given that the Department of Transport has previously confirmed that the legislation for the breaking up of the Aer Rianta monopoly would be moved prior to the Dáil summer recess in 2003, prior to the Christmas recess in 2003, prior to the Easter recess in 2004, when can the users of Dublin Airport expect the Department to actually publish this legislation."

In relation to the terminal, he said, in the statement: "Given that the Department of Transport has been sitting on 13 separate expressions of interest for the building of a second competing terminal at Dublin Airport for over 18 months now, when can we expect the Department to actually make a decision on a second terminal."

Mr Brennan said it was easy for Ryanair to make such comments. He said that policies had to be agreed with colleagues and legislation had to be drafted carefully, but things were "well advanced" on the Aer Rianta break up and a new terminal would be next.

"I have taken the view that to try the two at the same time is probably more than the system can take."

On Aer Lingus, he said that two reports were recently put before the Cabinet and discussions were continuing. He said that, over the next few months, he wanted to remove the uncertainty "one way or the other".

ishmael whale

Lets just hope that the reference to Shannon receiving “some protection and breathing space” in the article below isn’t a code for keeping the stopover in some form. It’s a bizarre and uncomfortable way of subsidising the airport, and its about time we quietly took this policy around the back of the shed with an axe.

http://www.examiner.ie/pport/web/Full_Story/did-sgp1IvqRJlkhksgadLjt5C321I.asp

17/04/04
Open Skies must include Shannon
By Michael O'Farrell and Ian Guider
THE Government will not agree to any Open Skies deal that fails to take into account the implications of scrapping the Shannon stopover, Transport Minister Seamus Brennan indicated yesterday.
However, with the deal expected to be finalised by October of this year, SIPTU last night expressed fears about the region's future if the stopover is abandoned.

SIPTU national industrial secretary Michael Halpenny said the elimination of the stopover would pose grave problems.

"It is difficult to see how the future of Shannon and the region can be copper-fastened, as Seamus Brennan says, if the Shannon bilateral agreement is ended," he said.

Mr Brennan said the Government would not agree to anything that would not give breathing space to allow Shannon airport to adjust to the new market.
………………………

He said that if an agreement was reached Aer Lingus saw "significant scope to expand in the US".

However, the creation of a 'single sky' across Europe would have implications for the existing arrangement whereby half of all flights to and from the US stop at Shannon Airport. The ending of this situation would have a disastrous impact on Shannon, which is heavily dependent on transatlantic traffic.

Mr Brennan said: "I made it clear that [the] Irish Government would want to be satisfied that the future of Shannon was assured and solid before we agree any US/EU deal. But I'm confident from my discussions with [the Americans] that it would be possible to insert into a deal some protection and breathing space for Shannon Airport.

John R

Just the usual pre-election vague promises.

Victor

http://home.eircom.net/content/unison/national/3082181?view=Eircomnet

Airport 'poised as €5bn hub' for European cargo
From:The Irish Independent
Monday, 26th April, 2004

SHANNON Airport is set to become Europe's air cargo capital, a new study shows.

As concern remains that the airport might be sidelined if there are big changes to the Ireland-US air agreement, the report says Shannon can in future cash in on cargo business.

At present cargo business accounts for 40pc of world trade and is the fastest growing type of transport. International aviation expert Dr John Kasarda, who produced the study for Shannon Development, sees the possibility of the airport developing into the €5bn air cargo capital of Europe.

He predicts if it reached full potential it could create 15,000 jobs at the airport.

Kevin Thompstone, chief executive of Shannon Development, said: "With the unique strengths of the airport, the western seaboard has the potential to become a dynamic growth zone in an Irish and European economic context."

Building cargo business would complement development of new air services into Shannon. Shannon Development believes the hub could become a magnet for global manufacturers, assemblers and distributors. Mr Thompstone will give details tomorrow at a Shannon Development conference, 'Dynamic Regions - Building European Competitiveness' in Ennis.

He will be joined by Louis Turpen, Canadian airports expert; Barry Moore, director, PACEC Economic Consultants, and renowned authority on competitiveness, Professor Stephane Garelli from Switzerland. Jim O'Hara, vice president, Technology Manufacturing Group, Intel Corporation and general manager of Intel Ireland will also speak.

Tanaiste Mary Harney TD and Errki Liikanen, member of the European Commission responsible for Enterprise and the Information Society will also attend.

ishmael whale

If Shannon has a future as a cargo hub, would local campaigners ever be so kind as to indicate that they no longer need to hijack passenger planes out of Dublin and shake them down for a few bob.

ZENER

Did Ryanair not try to fly out of Shannon a few years back ? Can't remember too clearly but I think it ended with Ryanair pulling a fast one and moving the routes to another regional airport.

I'm puzzled why O'Leary keeps associating the breakup of Aer Rianta with the building of a second terminal, I think he's trying to fix this idea in peoples minds so that he can claim displeasure again with the governments ineptness when it fails. These are two seperate features of the breakup one does not automatically mean the other is imminent.

I personally believe we should abandon the "poor little old Ireland" tag our government give us when they go cap in hand to the powers that be in Europe looking for concessions for the likes of Shannon airport. If the minister is so confident that this wonderful plan he has will work then jump in at the deep end and implement it without the aid of water-wings for Shannon, just as he intends to do for Dublin airport or Dublin Bus for that matter !

ZENER

Victor

http://home.eircom.net/content/irelandcom/topstories/3088345?view=Eircomnet

Airport's status under threat from open-skies plan
From:ireland.com
Tuesday, 27th April, 2004

Shannon's "Trans-Atlantic gateway" status which is under threat from a proposed EU-US open skies agreement, has been a fundamental part of Ireland's bilateral air service agreements with the United States since 1945.

In 1947 Shannon became the first customs-free airport in the world and introduced the world's first duty free shop.

With the arrival of the jet on the aviation scene the customs free zone was extended to an industrial base around the airport and this underpinned Irish manufacturing and exporting in the region from 1960 onwards. Shannon Airport and its free zone quickly became the starting point for American tourism and US direct investment in the Republic. The Shannon free zone is now home to 125 corporations, employing in excess of 8,000 people.

A 1997 study by consultants Alistair Tucker for the Mid West Regional Authority reckoned that 2,500 on-site jobs, 5,000 tourism related jobs and 29,000 indirect west of Ireland jobs depend on it.

Direct access to all carriers to Dublin was conceded by government in 1994 but the air services agreement was amended to stipulate that half of all US flights should continue to serve Shannon. By 2002 the US accounted for just 35 per cent of all flights at Shannon. Some 2.2 million passengers use the airport each year.It has a capacity for a further two million passengers a year and is seeking Government help in becoming a major US gateway, not just into Ireland but to Europe.

In addition to the possible loss of gate- way status, people in Shannon are concer- ned Government plans to break up Aer Rianta will leave it weakened and unable to fight back in an "open skies" scenario.

ishmael whale

Nothing like a fresh perspective on the situation. I like Dana’s suggestion that almost all jobs in the Mid West region are dependent on the Shannon Airport stopover. But probably best of all is the suggestion that imposing a stopover requirement that has protected a local lobby at the expense of the national interest, coupled with the investment of $40 million in Shannon’s unneeded new passenger terminal when Dublin could actually use a new terminal is presented as “typical of how the west has been neglected for decades”.

It’s typical of something, alright.

http://breaking.examiner.ie/2004/04/25/story144377.html

Dana calls for preservation of Shannon and 120,000 jobs
25/04/2004 - 9:01:21 AM

Over 120,000 jobs are dependent on the preservation of Shannon airport, according to MEP for the North West, Dana Rosemary Scallon.

Ms Scallon believes the Government is preparing to ditch the dual gateway which requires that transatlantic airlines land in Shannon as many times as they do in Dublin.

She claims to have secured the support of a US Congressman, who is trying to convince Washington not to seek an end to the dual gateway requirement but has no commitment from the Government here.

Dana says this is typical of how the west has been neglected for decades.

Victor

http://www.rte.ie/business/2004/0505/shannon.html

Open skies warning from US Chamber
May 05, 2004 16:24

The Chairman of the American Chamber of Commerce MidWest Group said today that it would be irresponsible to introduce an open skies policy at Shannon Airport without a cohesive strategy in place to protect what he called 'this most vital piece of infrastructure in the western region'.

Kieran McSweeney, Managing Director of Avocent, said that 40,000 jobs are directly affected by Shannon airport with another 80,000 indirectly affected by the airport.

'Conceding any change on the dual gateway policy in advance of an economic impact analysis and agreed regional strategy creates too much of a risk to industry and tourism in the entire western region and could seriously impact future foreign direct investment from the US,' he said.

Mr McSweeney said there had a been a serious decline in the level of service being offered from Shannon, and currently, the airport is not supporting the business need.

He said that reduced service by carriers and ill timed flight schedules means that companies based in the Mid West can not easily connect to the major business cities in Europe, including Dublin, and can not attract potential customers to their companies.

http://home.eircom.net/content/irelandcom/topstories/3135440?view=Eircomnet

Passenger numbers 'could double' at Shannon airport
From:ireland.com
Wednesday, 5th May, 2004

Passenger numbers at Shannon Airport could double to four million a year under the management of the new airport authority for Shannon, the chairman of the designate Shannon Airport Authority has claimed, writes Gordon Deegan

Mr Pat Shanahan said Shannon would become a low-cost hub to compete with Dublin and Cork airports. He was outlining his vision for the future of Shannon airport to members of the Mid-West Regional Authority in Tipperary yesterday.

Mr Shanahan - who is also a current director of Aer Rianta - said becoming a low-cost hub would require a change in Shannon's business model, whereby more income would be generated through retail and property as opposed to landing fees.

Appointed last October as designate chairman, Mr Shanahan, along with the airport authority, is expected to be formally installed to manage Shannon airport over the summer.

Mr Shanahan said that passenger numbers under the new airport authority could double to four million a year.

He said that in the shorter term, Shannon needed to address the deficit in services to Europe and the UK.

The designate chairman said that compared to Dublin and Cork, Shannon's catchment area was limited.

Mr Shanahan said that the infrastructural deficit in the Mid-West is one of a number of issues that needed to be addressed prior to the re-negotiation of the bi-lateral agreement with the US.

The re-negotiation is expected to end the Shannon stop-over on a phased basis, while providing Aer Lingus with additional routes to the US.

According to Mr Shanahan, another issue that needs to be resolved is Aer Lingus's commitment to Shannon. He said that the carrier has a certain amount of resentment having to stop at Shannon as part of the current agreement.

Outlining the need for Shannon to provide year round services to cities in the US, Mr Shanahan said that if there was any deterioration it would have significant consequences for economic development.

ishmael whale

Originally posted by Victor


http://www.rte.ie/business/2004/0505/shannon.html

'Conceding any change on the dual gateway policy in advance of an economic impact analysis and agreed regional strategy creates too much of a risk to industry and tourism in the entire western region and could seriously impact future foreign direct investment from the US,' he said.

I suppose there's no chance of an economic impact analysis on the national impact of continuing the stopover policy.