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State Airports

Dáil Éireann Debate, Tuesday - 16 July 2013

Tuesday, 16 July 2013

Questions (1170)

Timmy Dooley

Question:

1170. Deputy Timmy Dooley asked the Minister for Transport, Tourism and Sport if he is satisfied with the performance of the Shannon Airport Authority since the airport became independent of the Dublin Airport Authority, DAA; if he will reaffirm his commitment that the terms and conditions of the previously employed DAA employees working in Shannon Airport will not be diminished in any way when they become staff of the Shannon Airport Authority; if there will be any loss of employment or change in employees' terms and conditions, including pensions, as a result of the change over to Shannon Airport Authority; and if he will make a statement on the matter. [34284/13]

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Written answers

As the Deputy will be aware, the assets, business and employees of Shannon Airport transferred from the Dublin Airport Authority to the Shannon Airport Authority (SAA) on 31 December last following approval by both Houses of the Oireachtas of the "Shannon appointed day" Order (S.I No. 571 of 2012). The State Airports Act 2004 provided the statutory basis for the separation of Shannon airport from the DAA. That Act also contains provisions in relation to the terms and conditions of service, including pension matters, of the employees who transferred to the SAA last December and those provisions remain unchanged. I am satisfied with progress  to date by the now independent Shannon Airport Authority.

It will be recalled that a major consideration for the Government in its decision on Shannon of last November was the serious decline of passenger traffic at the airport over recent years. Passenger numbers plummeted by over 60% from a peak in 2007 of 3.62 million to 1.39 million in 2012. It was recognised that a consistent decline on this scale would be challenging to reverse and would not happen overnight. Indeed, passenger numbers continued to decline in the first five months of this year. The immediate priority for the reconstituted board and new CEO of SAA is to halt this decline and then reverse it.

I was very pleased to see that last month, June, recorded the first monthly growth in passengers at Shannon in over five years - an 8% increase compared to June 2012. With a focus on developing new routes and on driving additional traffic on existing capacity, 2013 is currently forecast to see a modest overall increase of approximately 1.5% in passenger traffic at Shannon for the first time in seven years. If this reversal in the slide over the past five years is confirmed as the year progresses, it will prove a major achievement for Shannon in its first full year as an independent airport.

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