Seanad debates

Tuesday, 27 May 2014

State Airports (Shannon Group) Bill 2014: Committee Stage

 

6:05 pm

Photo of Ned O'SullivanNed O'Sullivan (Fianna Fail) | Oireachtas source

We are opposing this section on the grounds that it is unfair, in the main, to the future of Cork Airport. It does not in any way answer the major uncertainty hanging over the future of the Cork facility. As it is so vague, it has added to the anxieties that the business community and the people of the south west have about the future of their airport. It seems as if continuing to have the airport operating as it does, attached to the Dublin Airport Authority, puts it at a major disadvantage to Shannon, which is having its status changed. We welcome the promotion of Shannon and the investment there, as well as the clearing of the debt. Nevertheless, we must look to Cork as well.

The Bill provides for the dissolution of the airport authority in Cork on a day to be appointed by order by the Minister.

Cork Airport appears to have been the loser overall in the reconfiguration of the State airports. We have seen the dramatic fall in passenger numbers, which are down by 28% or 2.35 million in the past five years. We must see how we can shore that up and protect and enhance the future of Cork Airport. It seems that Cork Airport is highly unlikely to meet its previously stated target of breaking even on a cash basis by the end of this year. Its owners remains focused on returning the airport to growth but the Bill does not give them any solid basis in terms of outlining the Minister's plans for the airport. The latest annual report and accounts from the Dublin Airport Authority, published at the start of May 2014, show that passenger traffic at Cork declined by 3.5% to 2.3 million in 2013. There were some major factors involved in the decline such as the general weakening in traffic on routes to Britain. Traffic was also considerably affected by the decision of the Hungarian carrier, Wizz Air, which had operated six routes from Cork to Poland and Lithuania, to cease operating from Cork Airport due to competitive pressures. Our view is that Cork Airport is suffering due to its position as the DAA's second airport, with Shannon Airport's new independent status making it more competitive in seeking new business. We propose that the section should be deleted and revisited.

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