I welcome the opportunity to speak on this Bill. Shannon Airport is critical to the western seaboard. A recent survey showed that over 50% of transatlantic passengers who disembark in Shannon Airport will wind up in Kerry, while only 21% of those who disembark in Dublin will go there. Shannon Airport is, therefore, vital for regional development.
Dublin Airport is much too dominant in the market. It accounts for 84% of European traffic, 81% of UK traffic and 80% of Aer Rianta traffic. In contrast, Shannon Airport accounts for just 7% of Aer Rianta's UK and European traffic, according to the 2002 figures. Dublin Airport also has 56% of transatlantic traffic but this represents only 5% of its business mix because of its enormous dominance of European and UK services. Shannon Airport has 44% of transatlantic traffic, representing 32% of its traffic mix. Any change in the bilateral agreement that affects Shannon Airport will have major repercussions for the entire western seaboard.
None of the five reports that have been commissioned into airport services recommended the approach now being taken by the Government. The PricewaterhouseCoopers report has been quoted most often in the House. That report failed to show that Shannon and Cork Airports could survive as viable stand-alone entities. The report also acknowledged that additional capital expenditure would have to be met by increasing landing charges, which would reduce competitiveness. It stated there would have to be a major investment of €36 million in Shannon Airport in the years between 2005 and 2008. Will this happen if Aer Rianta is broken up and a company is established in Shannon with few resources?
Recently the Minister received a report, based on departmental figures, that estimated Shannon will need an annual subvention of €10 million to survive. The ending of the stop-over will form an integral part of any new arrangement so Shannon will not have the necessary numbers arriving from America. In Farranfore Airport, which is operated on a shoestring budget, things are tight, but I cannot see the same practices that have helped to make Farranfore Airport successful working in Shannon Airport. Comparisons have been made between the two airports but they are inaccurate.
I fear that Shannon Airport will be the loser if we go down this road. In the past, I supported an arrangement where there would be a separate entity to support Shannon Airport under the umbrella of Aer Rianta, with a subsidy from Dublin Airport, which is successful and profitable. That would ensure the cake was shared nationally — it was a vehicle for a regional strategy. This proposal, however, is doomed to failure.
The Minister wants to create change and I admire him for that but in this instance he is wrong. The business plans should have been prepared first with the legislation following if the plans were viable. If that was the case, Shannon Airport would still be part of Aer Rianta under the new name of Dublin Airport Authority, with Cork Airport standing alone. There is no way the figures will add up so Shannon can survive on its own.