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[Article] Cullen to be quizzed over airport authorities appointments

31-10-2004 8:19pm

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Victor

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http://www.thepost.ie/web/DocumentView/did-218098261-pageUrl--2FThe-Newspaper-2FSundays-Paper-2FNews.asp

Cullen to be quizzed over airport authorities appointments
31/10/04 00:00
By Niamh Connolly Public Affairs Reporter

Minister for Transport, Martin Cullen, will be quizzed this week on a potential conflict of interest arising from the appointment of two businessmen to the boards of Dublin and Cork airport authorities.

The Irish Tour Operators Federation (ITOF) has raised concerns about the appointments of Sir Michael Hodgkinson to the board of the Dublin Airport Authority (DAA), and of Don Cullinane to the Cork Airport Authority (CAA) board.

Hodgkinson was appointed chairman of First Choice Holidays - the British parent of Falcon Holidays in Ireland - days after his appointment to the DAA by former transport minister Seamus Brennan. Cullinane is the chief executive of Beacon Travel. Referring to the role of Hodgkinson, Michael Stein of Stein Travel said: "We would be highly upset if there is a conflict of interest. "It is important for ITOF to make representations to the Minister for Transport on this issue."

The ITOF has already written to Joe Gantly, the chairman of the CAA, questioning Cullinane's appointment on the grounds of a possible conflict of interest.

The Irish holiday market is dominated by three tour operators. Falcon and Budget hold about 30 per cent each, while the MyTravel Group, which includes Panorama/ Airtours, has about 25 per cent. The ITOF includes the MyTravel Group, Budget, Falcon Holidays, Sunworld, Sunway, Abbey Travel, Stein Travel and Topflight. There is disquiet among the ITOF members that Hodgkinson and Cullinane may have access to commercial information, including statistics on the market share of charter airlines used by rival tour operators.

Information on poorly-performing charter flights could provide leverage for tour operators to secure preferential rates by travel agents, they believe. There is no suggestion of wrongdoing on the part of either Hodgkinson or Cullinane. In response to queries from The Sunday Business Post, the DAA said it had procedures to ensure that any member of the board with a perceived or actual conflict of interest absented themselves from commercially sensitive discussions.

ADAA spokesman said the statement also applied to Don Cullinane's appointment to the CAA. At the time of the appointments, Seamus Brennan said he wanted to appoint business people with experience of the airline and tourism industries.

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