The main focus of the exercise conducted by Warburg Dillon Read in 1999 was to review the strategic options for the future of Aer Rianta. As regards the concept of an independently owned terminal at Dublin Airport operating in competition with Aer Rianta, the general thrust of the consultants report, based on a very brief review of the issue, was negative.
Much, however, has changed in the aviation sector since that time and this process of change, which is global in nature, will continue. A slowdown in the world economy which began in 2000 was exacerbated in Ireland the following year by the outbreak of the foot and mouth disease epidemic in the UK and the necessary measures which we put in place to ensure that our country remained disease free. However, it was the dreadful terrorist attacks in the US on 11 September that year which had the most drastic negative effects on the global aviation industry and international travel in recent times. A number of major, well-known airlines have not survived the downturn in the market following those events and most other airlines, including Aer Lingus, have had to implement restructuring measures and survival plans to ensure their continued existence on a viable basis.
Even while the repercussions of those events are still with us, we now have the possibility of a war in Iraq which would further adversely affect international civil aviation and tourism. Compared to four years ago, the global aviation landscape has changed dramatically and it is not only prudent but necessary that we look afresh at our structures and organisations involved in the aviation sector to ensure that we are equipped to deal with the challenges facing us in the changed, and still changing, environment before us.
Last month, I received the report from the panel of experts, chaired by Mr. Paddy Mullarkey, former Secretary at the Department of Finance, which I established to examine the expressions of interest received in relation to the question of an independent terminal at Dublin Airport. The panel concluded that the development of an independently funded and operated terminal is operationally and technically feasible and that such a terminal is a viable strategic option for the development of Dublin Airport and would elicit considerable market interest. I have made arrangements for that report to be published shortly on my Department's website.
Additional Information
I have also arranged for a process of consultation to get under way immediately with relevant interested parties and stakeholders in relation to the panel's report on the independent terminal concept at Dublin Airport. The board of Aer Rianta, the unions representing employees in the company and the Commission for Aviation Regulation will be involved in this consultation process which will also deal with the other major initiative relating to airports policy in the programme for Government, namely, the issue of greater autonomy and independence for Shannon and Cork airports. Following this consultation process, it is my intention to bring proposals to Government in relation to these two major issues.