Shannon Airport Thread [Mod Warning in First Post]

Some indications that local business leaders aren't buying the "its all the daa's fault" here:

https://play.acast.com/s/live-95-limerick-today-podcasts/960b24c1-8701-4e40-814b-e963e67e4ecf

The Copenhagen Economics report is too blinkered; for instance, relegating to footnotes that

The 2015 national aviation strategy formulated the ambition of developing Dublin as a vibrant secondary hub, competing effectively with the UK and other European airports for the expanding global aviation services market. To achieve this ambition, a third terminal at Dublin Airport is planned for, and a decision is likely to be made this year. If a decision is taken to go ahead with the expansion, the new terminal is expected to be in operation from 2030/2031. However, DAA has recently announced that Dublin Airport has stopped work on expansion because the Commission for Aviation Regulation plans to cut passenger charges. (https://www.irishtimes.com/business/transport-and-tourism/dublin-airport-stops-work-on-expansion-over-plan-to-cut-passenger-charges-1.3925111).

21 Dublin airport is the only airport regulated by the CAR.

Where you're in a context that the DAA are already curtailing expansion plans because of regulation, its a bit hard to see even more regulation to constrain DAA as a solution to anything.

Plus, they leave that issue of the national interest in competing with other hubs hanging.

Other hubs like, oh, Copenhagen.

mdmix

There is no point discussing the DAA anymore, whatever happens from here is rest with Shannon management. Shannon is the only Irish airport not growing and management need to face up to this.

I’m not sure what the strategy is, but right now it doesn’t look like there is one. The most unfortunate thing about the new route development fund is its open to all airports apart from Dublin. I think the most likely result will be a new cork - USA route, which will remove the one advantage Shannon currently has.

easypazz

mdmix wrote: »

There is no point discussing the DAA anymore, whatever happens from here is rest with Shannon management. Shannon is the only Irish airport not growing and management need to face up to this.

I’m not sure what the strategy is, but right now it doesn’t look like there is one. The most unfortunate thing about the new route development fund is its open to all airports apart from Dublin. I think the most likely result will be a new cork - USA route, which will remove the one advantage Shannon currently has.

I am sure management are aware of the situation but realistically there is only so much they can do.

JamesBond2010

mdmix wrote: »

There is no point discussing the DAA anymore, whatever happens from here is rest with Shannon management. Shannon is the only Irish airport not growing and management need to face up to this.

I’m not sure what the strategy is, but right now it doesn’t look like there is one. The most unfortunate thing about the new route development fund is its open to all airports apart from Dublin. I think the most likely result will be a new cork - USA route, which will remove the one advantage Shannon currently has.

ya you are right i was only discussing the twitter post.I dont see that happening somehow. they wouldnt have the no's for usa flight

fonzy951

JamesBond2010 wrote: »

that biggest load of bull **** i saw on the planet. they only rteason they are surviving is cause the DAA are giving flights & have arrangements with some of the airlines to provide cork with some routes, they would be nothing otherwise. If they were that good norwegian wouldnt have left u even got subsidised parking when you flew with them from cork.

Maybe Cork airport is surviving because its located in the second most populated area of the Republic, in fact it should be doing much better than it is tbh. Airlines will not operate routes from Cork unless they have the numbers etc., no matter what the DAA says. Most of the new routes from Cork have been very successful with extended services in some cases. You do realise Cork has a much bigger catchment area than Shannon, 400K people alone live within 20 miles of Cork airport. Cork airport should be doing much better and the problem is Dublin's third terminal located Patrick's Quay, Cork.

Jamie2k9

highlydebased wrote: »

DAA can easily give Cork a leg up as much as they want to - they have the relationships that clearly deliver. Start a route from Cork and X deal on fees at Dublin. It's also a known fact they will do certain details at Dublin if the airline stays away from other airports in the state.

daa may do a lot of things but the real reason carriers don't serve outside Dublin is they know the market is small and only dilute there offering because they won't be able to operate a freq to work for most and they will still end up using x routes at DUB.

Daily or more is what's needed and very very hard to sustain outside DUB and if you cannot you are left with low hanging fruit i.e. leisure travelers with a max price point.

Its a little worrying FR are more interested in Cork and Knock and not SNN. The lack of anything from them is rather worrying even within traditional markets unlike Cork were they are trying new area's.

WW comments are something I think the airport could have done without but looks to me all the local media outlets have ignored.

The whole having to pay for baggage facilities has been know for 8 years and airlines foot the bill at SNN. It's in excess of 30 million at Dublin/Cork and part of operating an airport.

https://clarechampion.ie/mary-considine-appointed-chief-executive-of-shannon-group/

British Airways flight BA2204 from Punta Cana to London Gatwick diverted to Shannon this morning.

Reason unknown.

https://www.dailymail.co.uk/news/article-7588291/British-Airways-diverts-flight-Dominican-Republic-London-Gatwick-drunk-passenger.html

Brennans Row wrote: »

British Airways flight BA2204 from Punta Cana to London Gatwick diverted to Shannon this morning.

Reason unknown.

Mary Considine to lead Shannon Group (Irish Times)

Mary Considine is taking over as chief executive of the State-owned company responsible for Shannon Airport, Bunratty Castle and other businesses.

Ms Considine has been acting chief executive of Shannon Group, responsible for the mid-western airport, its commercial properties and heritage business, since June of this year.

Shannon Group’s board confirmed on Friday that it has formally appointed Ms Considine to the role for a seven-year term.

Ms Considine is an accountant with experience in aviation, finance and commerce.

Flight diverts to Shannon after security alert (Clare Herald)

A transatlantic jet was forced to divert to Shannon Airport this afternoon following a security alert on board.

Air France flight AF-136 was travelling from Paris, France to Chicago in the U.S. when a ’suspicious’ mobile phone was found on the aircraft.

The flight was almost two hours into its journey when the pilot advised air traffic controllers that they wished to divert to Shannon Airport for “security reasons.”

Tiernster7

Is there any revenue for Shannon from these outcomes ?

Tiernster7 wrote: »

Is there any revenue for Shannon from these outcomes ?

The diverting airline will have to pay the normal runway movement and parking fees. Individual passenger charges will usually be waived.

The income will depend on the type of aircraft, and the duration of its unscheduled stay. But each episode probably earns a few thousand euro for the airport.

But I think its fair the say the bulk of the costs arising for an airline are the dumped fuel and passenger-related costs - if they suddenly have to feed and accommodate a couple of hundred people.

So that could be some additional earnings for someone e.g. local hotel, if there's an overnight delay.

Process To Upgrade Shannon Airport Access Road Begins (Clare FM)

Clare County Council has engaged Fehily Timoney & Company to deliver the planning and design phases of the project, which will see an upgrade of a 2.2km stretch of road between the Drumgeely and Knockbeagh Point Roundabouts, which are both on the approach to the Airport.

The contract will see the company assist in guiding the project through Statutory processes, and this phase is expected to be completed at the end of 2022.

Brennans Row wrote: »

But property prices are way higher in Dublin than in the Mid-West.

I was only implying that you were exaggerating the property value of the Shannon Group especially when a lot of investment is needed to make old empty building stock attractive again for new clients.

I never mentioned the DAA.

We probably need someone with good accounting skills to interpret the real value of the group from the balance sheet along with the groups liquidity and borrowing risks.

Can you not elaborate on what poor management led to a drop in passenger numbers for 2019 and what good management would have prevented it?

Not rocket science

Debts of €18.389 million.

Investment properties valued @ €109.709 million
Buildings plant and equipment (Mainly airport I would assume) values @ €63.952 million

They also appear to have high level of cash on hand (15.725 million at the end of 2018) so they have the capability of making the investment themselves.

I suspect the issue is that they could get a far better return on that investment outside the airport.

hobie14

Alitalia .....FCO -JFK AZ610 on approach now after turn back ...

hobie14 wrote: »

Alitalia .....FCO -JFK AZ610 on approach now after turn back ...

Alitalia flight AZ610 from Rome to New York has diverted to Shannon.

Reason unknown.

knipex wrote: »

Not rocket science

Debts of €18.389 million.

Its a mystery to me because the Group has already completed €40 million on capital projects in the last few years.

knipex wrote: »

They also appear to have high level of cash on hand (15.725 million at the end of 2018) so they have the capability of making the investment themselves.

Yes, but cash is normally part of working capital and should not be used to finance long term capital investments.

Here is a 2019 capital project and will interesting to see its treatment in this years balance sheet.

Shannon Group on target to deliver €18m hangar (Clare Herald)

Molex to cease operations by end of 2020 (Clare Herald)

There had been speculation that an announcement was imminent from Molex which was established in Shannon in 1971.

The company has now confirmed plans to close the facility by the end of 2020 resulting in 500 workers being impacted.

Molex brings together innovation and technology to deliver electronic solutions to customers worldwide. With a presence in more than 40 countries, Molex offers a full suite of solutions and services for many markets, including data communications, consumer electronics, medical, industrial, automotive, and commercial vehicle.

tv221

Brennans Row wrote: »

Molex to cease operations by end of 2020 (Clare Herald)

There had been speculation that an announcement was imminent from Molex which was established in Shannon in 1971.

The company has now confirmed plans to close the facility by the end of 2020 resulting in 500 workers being impacted.

Molex brings together innovation and technology to deliver electronic solutions to customers worldwide. With a presence in more than 40 countries, Molex offers a full suite of solutions and services for many markets, including data communications, consumer electronics, medical, industrial, automotive, and commercial vehicle.

A real shame. All's not well at Element Six either. Jobs going on weekly basis. The massive old Tellabs plant across the road from molex on the market as well.

Brennans Row wrote: »

Its a mystery to me because the Group has already completed €40 million on capital projects in the last few years.

Perhaps.. but they also sold a number of properties, and are generating significant profits.

One thing that did surprise me is that they adjusted the value of property holdings DOWN 15 million and are showing a 450K loss on sales of investment properties in 2018..

Brennans Row wrote: »

Yes, but cash is normally part of working capital and should not be used to finance long term capital investments.

Here is a 2019 capital project and will interesting to see its treatment in this years balance sheet.

Shannon Group on target to deliver €18m hangar (Clare Herald)

I agree I was merely pointing out that liquidity is not an issue. They added nearly 6 million to their cash balance in 2018. That's a not insignificant sum.

They are a profitable company,
Have significant cash reserves
significant assets
and very low debt levels..

They would have no problem accessing capital if required.

tv221 wrote: »

A real shame. All's not well at Element Six either. Jobs going on weekly basis. The massive old Tellabs plant across the road from molex on the market as well.

Molex were hit hard by the US China trade war but they appear to have been recruiting until recently..

Element 6 has, to my knowledge, been up and down for quite a while.

Older industries arent transitioning well and are struggling in the high cost Irish economy. But in saying that a number of manufacturing companies in Shannon are doing very well.

The entire precision engineering sector appears to be doing very well, and the aviation sector appears to be very resilient

knipex wrote: »

Molex were hit hard by the US China trade war but they appear to have been recruiting until recently

Trump is an elephant in porcelain shop.

How ironic to see an American company to lose out globally as a result.

knipex wrote: »

The entire precision engineering sector appears to be doing very well, and the aviation sector appears to be very resilient

I believe in the early days Molex had a 50% share in Smithstown Light Engineering.

Great to see a an independent home grown company doing very well today.

Brennans Row wrote: »

I believe in the early days Molex had a 50% share in Smithstown Light Engineering.

Great to see a an independent home grown company doing very well today.

According to the SLE website Molex bought into the company in 1984 but were bought out in 2006 and they appear to have gone from strength to strength since..

But its not only Smithstown. Lots of Engineering companies doing well. Shannon precision, Lenane Precision, Ohshima and many others are expanding and investing.

Its far from all bad news in Shannon but it is all we appear to hear about..

golfball37

New twice weekly service to Vienna announced for 2020. I hope this is the start of branching out in Europe for Shannon. Paris or Amsterdam is badly needed.

JCX BXC

golfball37 wrote: »

New twice weekly service to Vienna announced for 2020. I hope this is the start of branching out in Europe for Shannon. Paris or Amsterdam is badly needed.

With who?

At least it's not all doom and gloom!

Cookiemunster

JCX BXC wrote: »

With who?

At least it's not all doom and gloom!

Most likely Lauda I'd assume, but I've seen nothing from Shannon or any airline, so I'd say using the word 'announced' is a bit premature.