Pat Breen (Clare, Fine Gael)
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Question 22: To ask the Minister for Transport if a draft copy of the Shannon Airport business plan has been discussed with officials of his Department; if so, if he will provide details of these discussions; if not, when the business plan will be finalised and agreed with the unions; and if he will make a statement on the matter. [9706/05]

Jimmy Deenihan (Kerry North, Fine Gael)
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Question 27: To ask the Minister for Transport if he intends to introduce legislation to affect the merger of the Shannon Free Airport Development Company with the recently created Shannon Airport Authority; and if he will make a statement on the matter. [9544/05]

Michael D Higgins (Galway West, Labour)
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Question 30: To ask the Minister for Transport the situation with regard to the proposed break-up of Aer Rianta; if a decision has been made on the future of Aer Rianta assets, such as the Great Southern Hotel Group; and if he will make a statement on the matter. [9688/05]

Jack Wall (Kildare South, Labour)
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Question 33: To ask the Minister for Transport if he is considering the introduction of public service obligation levies for certain routes between Shannon Airport and the United States; his views on the effect these levies may have on the competitiveness of routes to the United States from Shannon; and if he will make a statement on the matter. [9700/05]

Martin Cullen (Waterford, Fianna Fail)
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I propose to take Questions Nos. 22, 27, 30 and 33 together.

In keeping with the provisions of the State Airports Act 2004 the board of the Dublin Airport Authority has a statutory mandate to do everything necessary to give effect to the restructuring of the State airports.

The Shannon and Cork airport authorities were incorporated in October 2004 and in line with the framework provided by the State Airports Act 2004, these two new authorities will, in due course, own and operate their respective airports once sufficient distributable reserves are available to transfer the relevant assets.

Prior to the assets of Shannon and Cork airports being vested in their respective authorities, their boards are charged with preparing to assume full responsibility for the management and development of their airports. They are also empowered to undertake functions delegated to them, on an agreed basis, by the Dublin Airport Authority. Each of the airport authorities are also required to prepare comprehensive business plans for their airports. As part of this process the Dublin Airport Authority will be considering the future direction of its business, including the position of its subsidiaries.

In accordance with the 2004 Act, the transfer of assets to Shannon and Cork airport authorities cannot take place earlier than 30 April 2005 and, thereafter, a phased approach will allow one of the new airport authorities to be vested first, that is, Shannon Airport, while Cork Airport will be vested once sufficient distributable reserves have been built up within the Dublin Airport Authority.

Both I and the Minister for Finance must be satisfied as to the state of operational and financial readiness of the Shannon and Cork airport authorities before the assets of the airports are vested in those authorities. The formulation of comprehensive business plans by the new boards will be a key aspect of achieving operational and financial readiness.

The boards and managements of all three airport authorities, including Shannon, are currently preparing business plans for submission to the Ministers for Transport and Finance. A finalised business plan for Shannon has not yet been discussed with my officials but as required my officials keep in touch with the authority on progress. My understanding is that the Shannon Airport Authority will be looking to finalise its business plan as soon as possible.

The overall business planning process will entail a concerted approach by the three airport authorities. The business plans will be the subject of consultations with stakeholders, including union representatives.

As regards the possibility of merging Shannon Development and the Shannon airport authority, a working group was established by the Minister for Enterprise, Trade and Employment last year to consider options for how Shannon Development and the Shannon airport authority can best contribute to the development of the mid west region. While consideration has been given to a range of options no decision has been taken on a possible merger of Shannon Airport Authority and Shannon Development.

There is no proposal under consideration at present for the introduction of a public service obligation, PSO, regime in relation to air services between Shannon and the United States. Such an arrangement would not be permitted under the existing EU regulations governing PSOs which relate solely to intra-regional air services within the EU.