Oireachtas Joint and Select Committees

Wednesday, 23 January 2013

Joint Oireachtas Committee on Transport and Communications

Shannon Airport: Discussion with Shannon Airport Authority

9:50 am

Ms Rose Hynes:

In the context of the business plan, we are in discussions with several airlines. As stated earlier, some of these discussions are at an advanced stage. If, when it was in existence, my task force was of the view that it was going to make any recommendations in its final report, it tended to get ahead of those recommendations in order to give them momentum. As a result, we engaged in discussions with many airlines in respect of increasing passenger numbers. This gave matters a particular momentum. We did not want to leave behind in a report a set of recommendations which might or might not have been implemented. We created momentum for the recommendations and gave some of them a good nudge forward. The discussions to which I refer are, therefore, more advanced than would otherwise have been the case. As already indicated, passenger capacity on a number of different routes to the US will increase by 23% or 24% this summer. We are starting from a very low base - 1.4 million passengers - and, therefore, any increase is going to be significant. Our strategy is that there is not one particular answer in respect of this matter but rather that a range of opportunities must be pursued.

We are also working hard to see what might be done to increase transit traffic. In that context, we are working with the Department of Transport, Tourism and Sport in respect of giving freedom rights to airlines from other countries to stop at Shannon before travelling on to the US. As already stated, a range of options - rather than just one - must be pursued. The first challenge we face is to arrest the downward spiral. After that, we must stabilise the business and then grow it. As the Deputy will be aware, I cannot state exactly what we are doing but discussions are well under way.

On the question of appointing a CEO, he or she and the management team will have all of the relevant experience. Deputy Dooley will probably have seen the job advertised in the newspapers last weekend. The person who will be appointed to the position of CEO will have an experience and a track record. He or she will also have the vision and appetite to take on a challenge. He or she will be someone who wants to make a name for himself or herself, particularly as doing so is a possibility in this instance. We will be obliged to fill gaps in the management team and it will be the responsibility of the CEO to identify and fill those gaps. In the circumstances in which we find ourselves, the existence of such gaps is inevitable.

I will not comment on the situation regarding Ryanair and Aer Lingus, particularly as it would not be appropriate for me to do so. I will also not engage in hypothetical speculation on the matter. We are considering this issue but it would not be appropriate for me to speculate on it.

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