I thank the Senator for raising this important issue. Following on from the Booz report on the future ownership and operation of Cork and Shannon Airports, the Government decided in principle to separate Shannon Airport from the Dublin Airport Authority and merge it with a restructured Shannon Development to form a new entity in public ownership. It was also decided that the existing ownership of Cork Airport by the Dublin Airport Authority, DAA, would be maintained and that the DAA would be renamed to reflect the fact that there would be two airports in the group structure and an international business.
The Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton, and I will establish a steering group which will bring forward proposals for the implementation of the Government's decision. Questions on the structural changes for Dublin and Cork Airports are to be considered by the steering group in the first instance. However, the Government is strongly of the view that the future of Cork Airport is best served by it remaining within the DAA group.
Central to the work of the steering group will be the preparation of proposals for the separation of Shannon Airport from the DAA and, in conjunction with the DAA, to agree a business plan for the Cork and Dublin State airports. The group will also identify the optimum organisational structure for the merged entity to best suit the future development of the Shannon area, including a detailed business plan. The Minister for Jobs, Enterprise and Innovation and I look forward to working with the key stakeholders to progress the many issues relating to the Government's decision and particularly the future of the three State airports. Clearly, changes lie ahead for the airports, but it is in all of our interests to work together to ensure the future sustainability of all three State airports.
When the steering group has finalised its recommendations later this year, the Minister for Jobs, Enterprise and Innovation, Deputy Bruton, and I will revert to the Government with detailed proposals for the implementation of the Government decision. These will include business plans for the restructured Dublin Airport Authority, DAA, as well as an implementation strategy for the establishment of the new entity at Shannon. It is envisaged that this will include a plan setting out how the entity will contribute to achieving strong regional development while ensuring the highest standard of enterprise and support in the region.
I am pleased to note that, while passenger numbers at Cork Airport have fallen continuously in recent years since its peak of 3.3 million in 2008, recent statistics show that the number of international passengers going through the airport is increasing. I am hopeful that, with all stakeholders working together, this trend will continue for the remainder of the year and into 2013 when we will have the Gathering. All of the events being planned around the country, including in Cork, will attract more than 300,000 additional visitors to Ireland next year. The DAA and Cork Airport will actively support and engage with the event to ensure it reaches its full potential.
I will address some of the direct matters raised by the Senator. According to this year's figures to date, the number of international passengers using Cork Airport has increased every month. This is encouraging. Passenger numbers decreased last year, but it seems that they will increase this year. A major change for the airport is the fact that there are no domestic flights anymore. They will not return, given improvements in the road network. What really matters is the number of international passengers, which is on the rise. The recovery in international passenger numbers is more encouraging in Cork than it is in Dublin. The recovery is non-existent in Shannon.
There are different opinions on the airport's future. Some members of Cork's business community take the view that separation or privatisation would be the best option. Others take the view that the status quo or the status quo with more autonomy should obtain. This is the outcome that I currently favour. Unlike Shannon, Cork carries a considerable debt, largely related to the recent capital investment, that it will not be able to pay down on its own. It will take quite some time for the large passenger volumes passing through Dublin Airport to raise enough funds to pay down the debt. Only at that point could separation be considered, but it is some time away. I could not put a timeframe on it.
The other issue that arises in the case of Cork is that it is a different airport than Shannon. Cork Airport is centred in a heavily populated region and beside a city of real scale. Its future will primarily be led by increasing passenger numbers and passenger services as well as ancillary business. The future of Shannon is probably more the other way around, with a greater emphasis on the aviation industry as well as passengers. The airports are different beasts.