Seanad debates

Tuesday, 13 July 2004

State Airports Bill 2004: Second Stage.

 

5:00 pm

Michael Finucane (Fine Gael)

I am sorry; the head of Ryanair. That company had a successful route between Shannon and Frankfurt-Hahn but the business was moved to Farranfore, not because of a lack of passengers but due to the ethos of the Ryanair company that took exception to what it considered the excessive charges at Shannon Airport. I think the charge at the time was €5 per passenger. As far as I am aware, passengers flying from Farranfore subsequently paid a charge of €5 for the development costs of the airport. Where was the difference?

I studied the debate in the other House where contradictions were made in regard to comparisons on the success of regional airports in the UK. Bristol was used as a case in point but this was not comparing like with like. Two speakers contradicted each other in their analogies about Bristol and its success as an independent regional airport. The population base there is considerably different from that at Shannon. Ireland has a relatively small population base. The long-term success of Shannon is tied up with that of the west of Ireland in general and its cities, including Galway.

Infrastructural development is crucial. While we welcome the new Ennis bypass, I urge the Minister to drive from Ennis to Galway to experience the deplorable state of the road. We need good infrastructure. A new tunnel is earmarked to cross the River Shannon to Limerick which will improve the situation in future. Improvements in the fortunes of Shannon Airport are inextricably linked with infrastructural improvements in the area. As Senator Dooley stated, a rail link to Shannon should be developed from the Limerick-Ennis rail line. The question is whether we will get a consequential improvement in passenger numbers if we get infrastructural development.

It is incorrect of Senator White to say the airports will not be competing with each other. It is like a wedding cake; there are only so many slices. One can rest assured that in a competitive environment, Shannon, Cork and Dublin Airports will all be chasing the same business in a stand-alone situation where they all need to make profits. In the short term we will have to deal with the implications of the open skies policy for Shannon in view of its long recognition as a destination for flights to the United States. Many European cities, including those in Germany, do not have the privilege of flying directly to the United States.

There is great worry within Shannon Development and among Aer Rianta staff. Why would they not be worried? Why is it happening like this? Cork Airport appears to be operating successfully because it has gone aggressively for the charter business. All Shannon and Cork Airports wanted was more autonomy, not to have their umbilical cord to Aer Rianta cut off, which was vital. The board of Aer Rianta has tried its best and I understand its frustration and that of all staff at what is evolving. I do not know who is steering the Minister in this direction but it is time to cry stop because this is a hare-brained policy that will rebound. Whoever may be Minister for Finance next April will call a halt because he or she will not see the justification for this. I hope that will happen because I do not think we are going in the right direction in what we are doing.

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