Imelda Munster (Louth, Sinn Fein)
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32. To ask the Minister for Transport, Tourism and Sport his plans for the future of Shannon airport in view of recent reports that the airport is due to be downgraded and in view of the fact that it has failed to reach targets under its business plan regarding passenger targets and aviation jobs targets; and if he will make a statement on the matter. [29963/17]

Imelda Munster (Louth, Sinn Fein)
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I ask the Minister to outline his plans for the future of Shannon Airport in view of recent reports that the airport is due to be downgraded and in view of the fact that it has failed to reach targets under its business plan regarding passenger targets and aviation jobs targets. I ask him to make a statement on the matter. I know Shannon Airport is separated from the DAA. I am raising the issue because of the concerns over the downgrading of the airport's operations and its staff losses.

Shane Ross (Dublin Rathdown, Independent)
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I thank the Deputy for her question.

Shannon Airport Authority, SAA, a subsidiary of Shannon Group, has statutory responsibility for the management and operation of Shannon Airport and as such the issue raised by the Deputy is an operational matter for the company. Within that context, I will try to be helpful, but that should be acknowledged. That said, there is no proposal to downgrade the airport.

I understand that the need to evaluate business processes and practices in Shannon Airport in the context of productivity and competitiveness was identified in the run-up to the separation of the airport from DAA back in December 2012.

In this regard, one of the proposals on which the company has had recent discussions with staff and union representatives is to operate at category 9 on a flexible basis rather than operate permanently at that level, 24-7, all year round. This would contribute to a more efficient operating model at the airport without any material impact on flight operations.

Since independence from the DAA at the end of 2012, cumulative traffic at the airport has grown by over 24%. Prior to that, Deputies may recall that passenger traffic through Shannon Airport had fallen for five straight years; the airport lost two thirds of its passengers between 2006 and 2012. The first priority for the independent airport was to halt that slide and then reverse it. A decline of that scale was always going to be challenging to address, but it is to the credit of both management and staff that Shannon Airport has made significant progress in achieving that. Last year, almost 1.75 million passengers passed through Shannon Airport compared with just 1.39 million in 2012.

Also, since the establishment of Shannon Group, the number of globally recognised aviation and aerospace companies around the airport has increased from 40 to 50 companies, employing 2,400 people compared with 1,600 in 2012.

Like any business, SAA is conscious of the need to control its costs so that it can remain competitive and continue to attract new airline business in an increasingly competitive international marketplace.

Imelda Munster (Louth, Sinn Fein)
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On the first day of 2013 when Shannon Airport separated from DAA, a very impressive business plan outlined the benefits for the airport. It predicted 2.5 million passengers by 2021 and 3,000 new aviation jobs within five years, but Shannon Airport has failed to come anywhere near those figures. Despite these failures, the airport authority had announced an investment plan. However, this investment plan appears to be downgrading the airport and its operations and reducing staff numbers. It is essentially the opposite of the 2012 business plan. It appears to be lowering the status of the airport from category 9 to category 7. It will also limit the number of larger aeroplanes that can fly there and will mean that emergency stops can no longer take place at Shannon Airport. Is the plan now to reduce Shannon to a regional airport or to an airport that will only deal with a small number of airlines flying to a small number of destinations?

Seán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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I call on the Minister to give a very brief response as we are over time.

Shane Ross (Dublin Rathdown, Independent)
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There might be a slight confusion about categorisation. The Deputy is right that Shannon Airport is proposing to operate at category 7 when no category 9 services are flying through the airport and to flex up to category 9 when category 9 services are scheduled to operate through the airport. Operating at category 9 on a flexible basis, rather than operating permanently at that level 24-7 all year round, will enable the airport to operate at optimal manning levels in order to be as efficient and cost-effective as possible. This will contribute to a more efficient operating model at the airport without any material impact on flight operations.

What is proposed is not a downgrading, but an optimal use of resources in line with best business practice, ensuring that resources are deployed more efficiently as and when they are required. My Department has no policy or role regarding categorisation of any airport in the State, either State-owned or non-State-owned. This is a matter for each airport.

Let me deal with emergency flights briefly.

Seán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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Very briefly.

Shane Ross (Dublin Rathdown, Independent)
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Shannon Airport has no designated status as a diversionary airport. The airport is, however, an "extended range operation with two-engine aeroplanes" approved airport, capable of accepting diversionary traffic, including in emergencies. In instances where the airport is not operating to category 9, airlines are required to declare an alternative airport in case of emergency, prior to departing their original airport.