Jimmy Deenihan
Question:74 Mr. Deenihan asked the Minister for Transport his future plan for Shannon Airport; and if he will make a statement on the matter. [18224/02]
Other Questions. - Shannon Airport Development.
I refer the Deputy to my reply of today to priority Question No. 71 on this matter.
The programme for government includes a commitment that as part of the process of transforming Aer Rianta, we will ensure that Shannon and Cork airports have greater autonomy and independence.
A debate has now been stimulated by me, both within the Shannon and Cork regions and at a national level on the best ownership structure for these two airports going forward, in the context of continued State ownership. I visited both Shannon and Cork recently to further stimulate this debate.
There is a genuine sense of goodwill towards the airports in the two regions on the part of local tourism and business interests and views may differ on the best way forward. However, I will listen carefully to the views of all interested parties before framing proposals which I intend to bring to Cabinet within the coming weeks.
The new passenger terminal of Shannon which opened in 2000 has effectively doubled the Airport's capacity providing it with the capability to handle 4.5 million passengers per annum. Passenger throughput for this year is estimated at this stage to be in the region of 2.3 million. Shannon Airport is now well positioned to cater for future growth in air services.
In recent days, Aer Rianta has announced its new incentive scheme at the State airports to encourage the development of new routes. This new scheme will run for five years at Shannon and Cork Airports and for three years at Dublin. At Shannon and Cork, airlines launching new routes will enjoy a 100% discount on airport charges in the first year reducing to a 20% discount in the fifth year, and similar at Dublin.
I am intent on achieving a return to growth at Shannon where there has been a 4% decrease in passenger throughput for the first nine months of this year compared to the same period last year. The main reason for this is the continuing negative impact of the fall-off in travel on the transatlantic routes. As part of its new incentive scheme, Aer Rianta will give special consideration to promotional support for long haul routes, including North America, with a focus on increasing the numbers of inbound passengers.
These initiatives are intended to help reduce the impact of the global aviation downturn on traffic at the State airports, including Shannon Airport, and to boost the Irish aviation and tourism sectors in the months and years ahead.
Does the Minister agree that the future of Shannon Airport is important for tourism in the west of Ireland? Is he aware that 50% of north American tourists who disembark at Shannon wind up in Kerry while only 20% of north American tourists who disembark in Dublin wind up in Kerry? This is why it is so important from Donegal to Kerry that Shannon operates at its full capacity. The Minister has said Shannon has a capacity for a further 2 million passengers.
Shannon Development, in its annual report, proposed the establishment of a new independent board for Shannon Airport which would not include Aer Rianta. Does the Minister see merit in that proposal?
I see merit in the proposal and I have already explained to the Dáil that I am committed to the establishment of a new board in Shannon Airport, with international, national and local input. I am fully committed to the future growth of Shannon.
I would not say half of north American tourists wind up in Kerry. I would say they deliberately set out to go to Kerry. I am sure they go with a more positive attitude.
What about the Shannon Development proposal?
The Shannon Development proposal is one of many. In general I support what Shannon Development wants to do. However, it recommends a particular format and I have not come to a conclusion on that. I agree that autonomy is important for Shannon but I have not decided whether the form of autonomy its proposal puts forward is the one that will be proposed to Government.
Surely the Minister agrees that a new board without the involvement of Aer Rianta may not be in the interest of Shannon Airport. Aer Rianta is now an international company providing services across the world. It would not be in the interest of Shannon Airport and the west of Ireland if Aer Rianta were excluded from the development of Shannon Airport.
In a previous life I worked in tourism and one of our greatest problems was how to get people out of Shannon Airport by public transport. If a passenger wanted to travel to Killarney on the day he arrived in Ireland he or she had to arrive in Shannon before noon. It was almost impossible for a passenger to travel to Westport on the day he or she arrived at Shannon. Will the Minister do a comprehensive review of the public transport services to the airport, which would make Shannon a benefit to tourism on the west coast?
Is the Minister aware of the Doganis report on aviation and tourism? What role will Aer Rianta have in the new structures proposed for Shannon Airport? The Doganis report refers to Brussels Airport where a separate management company was established over and beyond the management of the airport and which was not successful. What role will Aer Rianta, the State owned airports authority, have in the new structures?
As a consequence of the suspension of flight EI-111, the Aer Lingus flight leaves Shannon at 3 p.m. and arrives in New York at 4 p.m., during the evening rush hour. This is not an attractive proposition for passengers. Can the Minister comment?
Deputy Deenihan asked me about Aer Rianta's involvement. The central question is what degree of autonomy the region wishes to have. I have to take clear account of the opinions of the interests in the region, such as Shannon Development, the management of Aer Rianta in Shannon, the mid-west county councils and all the other interests I have met. I am very interested in what they have to say and I am listening carefully to what Deputies have to say also. They have views that are worth listening to and I must take them into account.
I am committed to a new board in Shannon and the question relates to the degree of autonomy there. Does Shannon Airport want to make a fresh start as a State-owned company? I confirm that it will stay a State-owned company. There is no question of privatising Shannon Airport.
Is it the same for Cork?
Does it want to start with a clean balance sheet, its own marketing budget, funding from the Exchequer and a national, international and local board? Does it want that fresh start? Does it want to be able to compete with Dublin instead of being complementary to it? If it wants that start, I am happy to facilitate it. If the view is the opposite, that is something I will take into account. I ask that people stand back from this, give it some thought and see what is right for Shannon. That is the important thing.
Deputy Eamon Ryan asked about transport to airports and I agree with the point he made. I am trying to get the railway system to Dublin Airport going and there is a proposal about a rail link to Shannon which I am looking at carefully. I agree that airports must be linked to railway lines if they are to be made effective.