Dáil debates

Wednesday, 25 June 2014

State Airports (Shannon Group) Bill 2014 [Seanad]: Second Stage (Resumed)

 

4:15 pm

Photo of Kieran O'DonnellKieran O'Donnell (Limerick City, Fine Gael) | Oireachtas source

I am pleased to contribute to the debate. This is a good news day for Shannon, the mid-west and the wider region. I commend the Minister, Deputy Leo Varadkar, for bringing forward the legislation. I have always been of the opinion that it is impossible for a person to compete with his or her employer, but Shannon Airport was operating under the Dublin Airport Authority and effectively competing with its employer. My view has always been that this is impossible. It has now broken from these shackles. The fact that it is now independent and doing well is testament to the merits of making it independent.

The legislation is set out in a structured way. It provides for Shannon Group bringing together the Shannon Airport Authority and Shannon Development. This is being done in a structured way. It allows the land bank and buildings available to the Shannon Airport Authority to be used in a way that could bring about synergies. This is closely linked with national aviation policy, on which we are in consultative mode. I gather submissions are due to be made by early July. The policy will allow for an international aviation services centre and a centre for business aviation at Shannon Airport. It has a history, from leasing to repairs, and there are fantastic companies in the area. The fact that we intend to put in place an international aviation services centre and a centre for business aviation is welcome. No doubt these plans will find their way into the final report.

On passenger routes, Shannon Airport has come a tremendous distance in 18 months. Additional flights have been added recently. On transatlantic business, United Airlines operates a daily service from the airport to Chicago, with 88% additional capacity compared to last year. Delta Airlines operates a daily flight to New York, while US Airways operates a daily flight to Philadelphia and Air Transat a weekly flight to Toronto. Coupled with this business is a long-standing relationship with Aer Lingus which now operates daily flights to Boston and six weekly flights to New York. One sign of positivity is that these flights are now available all year round for the first time since 2009. There are nine new United Kingdom or European routes on which services are offered by Ryanair. Aer Lingus Regional operates a service on a new route to Bristol.

Let us consider the United Kingdom market. Shannon Airport has always been synonymous with Limerick city and when there are extra flights, it has a major impact on the entire mid-west region. In fact, it has been estimated that over 35% of the people who come from the United Kingdom spend time in Limerick. We hope this figure will increase. The corresponding figure for the European market is over 36%, which is fantastic. This shows the benefit Shannon Airport brings that in the short time since it became independent we have seen a significant increase in the number of airlines flying into and out of it, as well as an increase in the numbers of passengers. A terrific management structure is being put in place, which is most important. I am a firm believer in putting people with great experience into the right positions. Mr. Neil Pakey was manager of Liverpool John Lennon Airport. He has come to Shannon Airport and made it a great success in the relatively short time he has been with us - I hope he will be with us for a long time - under the stewardship of Ms Rose Hynes, chair of the board.

When I was reflecting on the matter, several points struck me. Recently a report was published by Professor Jim Deegan for the Shannon Airport marketing consultative committee. In it he put forward the case that Shannon Airport should be prioritised to be awarded the fifth freedom of the air. This relates to the freedom of airlines to fly in other countries' airspace. Shannon Airport already provides pre-clearance facilities. I call on the Government to support the calls for it to be given this status on the basis that it has pre-clearance facilities and is now independent.

It is an old-fashioned term, but there is a need for balanced regional development. Clearly, Shannon Airport provides a counter-pole to the eastern seaboard, in particular, Dublin. It is fair to say that in any objective assessment of Ireland there is too much of a concentration of the population in Dublin. To ensure a sustainable future for Ireland Inc., we need to provide a counter-pole along the western seaboard in terms of population, tourism and other industries. Shannon Airport is located centrally along the western seaboard. It provides an economic engine for the entire region in bringing people into the country and accessing export markets, which is very much to be welcomed and advocated.

This is well crafted and good legislation. One of the issues that has come up relates to pensioners, to whom reference was made. Several former employees of both organisations and people with deferred pensions have come to us.

They have asked how this legislation will impinge on their rights. This matter relates to section 18(4) of the Bill. Is there merit in the Minister considering how to accommodate these pensioners to ensure their rights are maintained and they receive equity of treatment? This issue is of major concern to them.

The Bill provides a new dawn for Shannon Airport and the region. The airport must continue to thrive in its core activity, that being passenger transport. It must continue to develop its aviation services in terms of aircraft and training. Will the Minister also consider awarding the airport the fifth right?

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