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CORK AND SHANNON airports could be privatised in the near future after a new report into their viability was commissioned by transport minister Leo Varadkar.
The loss-making airports could also be leased or run under a concession arrangement under proposals to separate them from the Dublin Airport Authority. At present, both Cork and Shannon have their own boards but only limited autonomy from the DAA.
Varadkar said yesterday that there was “great merit” in separation of the airports, and that all options were under consideration. A study will be carried out by consultants Booz and Company to provide “wide ranging advice” on the airports’ future.
Speaking on RTÉ’s This Week, the minister said that Cork is losing between €10million and €14million a year, with Shannon’s annual losses around €8million.
“In the past that was sustainable because the profits from Dublin [airport] were sufficient to cover that, and the profits from Aer Rianta,” he said, adding that that was no longer a viable arrangement.
He said “concession options, lease options [and] potential privatisation” were all under consideration.
Clare Fine Gael TD Joe Carey welcomed the initiative, saying that changes were necessary at Shannon. “For far too long Shannon Airport has been on a spiral of decline. The governance model is not working,” he said.
It was previously proposed that all three airports would be run as separate semi-State organisations. However, it’s understood this is no longer seen as an option.
The consultants are due to submit their report later this year.
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All airports should be privatised.
Not a surprising announcement. It’s all part of the asset liquidation that is going on with as only purpose to repay the IMF/ECB loans. It’s saddening to see that all revenue out of cutbacks & privatisation will go to repaying this foreign “debt”.
All that will be left of Ireland is an empty shell.
If you think things are bad now you haven’t seen anything yet…
Selling loss making white elephants is a splendid idea. If people think they really need them let them put their hands in their own pockets for a change
Amazing that we have a minister bent on privatising the one piece of infrastructure that can revitalise the West with tourism potential. We don’t see gov trying to privatise ceannt station or any other rail or bus station yet it they can abdicate responsibility for developing regional air traffic and sustaining tourism because of a paltry 8 million loss. We spend 400 million on rail and bus and it doesn’t have half the development power of Shannon Airport. Joe Carey has ‘taken the soup
would be great to see Shannon and Cork freed up to compete properly for airline traffic without the DAA controlling everything to justify T2. Stop the silly practises of having US bound passengers boarding in Shannon having to get off and be counted as Dublin departures. Thid could be a great opportunity to bring traffic back from Dublin and grow new business if local businesses work together with the airports to develop integrated packages.
Tom I dont think this happens anymore as I’m not aware of any airlines that fly from SNN to dub and on to the us but even if it does the reason they have to get off on Dublin is because they must clear US Immigration there, the Americsns wouldn’t let them do it in SNN as its not the last point of call till the US! If you wish to dispute this the. Just remember that for years EVERY us bound passenger from Dublin was forced to do the same thing at SNN until the bloody stupid Shannon stop over was rejigged in the 90s!
No airline operates from Shannon to the US via Dublin. And even when they did, it was because the US insists that the aircraft is security checked at its last point of departure to the US. And as for claims that Shannon and Cork subsidise Dublin, are you honestly trying to claim that an airport with 1.7 million passengers subsidises one with 19 million?? Shannon and Cork lose money – Dublin is doing the subsidising. If you dont believe me, check the annual reports on the web. Its there for everyone to see. Did anyone read the article where varadkar explicitly said this before they commented?
Both are having 2 sub DDA & TERMINAL 2. Both would be better privatised & able 2 market 2 airlines
The daa are paying are keeping cork and shannon airports afloat.There is NO WAY that cork and shannon are paying for T2 at dublin.Both of these airports have been loss making for years before T2 was even built.
I say privatise them…maybe then can end the ridiculous pracitice of Cork people having to drive to Shannon or Dublin to get a flight to New York. I think this would do to bring more tourists into the south and west than any government quango could who only have vested interests and centralised governace from Dublin. Once the private would drive it forward….yeah…why not?
i seriously doubt that any airline is going to o[pen a route from cork to NY
Ya never know…
I distinctly remember Michael O’Leary offering to buy the old Cork airport terminal. Perhaps the government could reconsider that? We could have a stansted style ryanair hub in Cork. Could pay Cork airports large debts and provide better flight infrastructure in Cork
I don’t really see how it can work in Shannon, which is losing so much money that few if any investors will want to touch it.
Even Cork is marginal. It makes a small operating profit, which is wiped out by interest payment on its debts. Certainly, you’d find interest in operating it debt-free, but that would still leave the DAA with the costs associated with servicing its debt.
IMF: Sell your people’s assets to our buddies at knockdown prices
Kenny: Yes Master
IMF= International Mafia Federation
What happened to the promise in the programme for government of a Humanitarian Hub in Shannon? It was discussed in the Dáil only a fortnight ago. Was Leo not listening?
http://www.kildarestreet.com/debates/?id=2011-10-11.428.0
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