Fall off in business at Shannon Airport causes concern for economy of region

The dependency of the midwest region's economy on Shannon Airport has again come into focus following the decline in the aviation…

The dependency of the midwest region's economy on Shannon Airport has again come into focus following the decline in the aviation industry over the past fortnight.

While the airport hummed with stranded passengers in the aftermath of the events of September 11th and benefited from a US carrier bringing marines to the Middle East this week, the full cost of the crisis will be counted later.

Directly affected by last week's terrorist attacks are Aer Lingus staff, who will suffer job cuts shortly. The shock waves will also be felt by Aer Rianta, which operates the airport's catering and duty-free services.

Transatlantic passengers accounted for 700,000 of the 2.4 million passengers who used the airport last year. "I am not diminishing in any way the seriousness of the transatlantic business for Aer Lingus and for us, but there are other markets that are being serviced," an Aer Rianta spokesman said.

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But car hire companies and hotels, bracing for a lean tourist season next year, have already felt the impact of fewer Americans travelling. An estimated 4,000 cars hired at Shannon are currently on Irish roads - about 15 per cent less than normal - said Ms Rosemarie Fogarty, finance director with Sixt Rent-a-Car.

Outside Shannon, the Bunratty Folk Park tourist attraction has traditionally depended on the airport's proximity for much of its clientele - many of whom are Americans.

Mr John King, Shannon Development's director of heritage and tourism, said: "In the last week, we would have received over 1,500 cancellations for the end of September and October."

At Fitzpatrick's Hotel, also in Bunratty, the management is relying on mixed marketing to keep business going. "The corporate and European market is still good," said manager Mr Denis Deery.

Up the road is Dromoland Castle, a favourite hotel of Mr Bill Clinton, which was immediately booked out last week as American visitors extended their holiday while waiting for flights home.

Last Friday night, they were being given "the most fantastic lifter up", according to one tourist, including a rendition of Danny Boy by two off-duty garda∅. But it was also a kind of swan song for the hotel, which had 430 room nights cancelled on the same day.

General manager Mr Mark Nolan says £500,000 (€635,000) worth of business was lost in the immediate aftermath of last week's events. "This is the first day that my reservations have exceeded my cancellations, so that is a good sign," he said yesterday.

For Mr Tom Kane, owner of Adare Manor Hotel in Co Limerick, it is "an instant replay" of the Gulf War of 1991, which occurred during a recession.

"Certainly, our cancellations from America are substantial. Bord Fβilte needs to market a domestic campaign for the Irish business to stay at home."

Further west, at Ballybunion Golf Club, cancellations came fast this week with 500 Americans pulling out, said Mr Jim McKenna, secretary-manager.

"It is early days to assess it. The prognosis is not good but let that happen first."

Back at the airport, business is slack. Incoming and outgoing Aer Lingus flights have empty seats. It is the worst crisis Mr Tom McInerney, corporate affairs general manager, has seen in 40 years with the airline.

In the US, Delta Air Lines has cut its service by 20 per cent and Continental is letting go 12,000 employees, although Shannon services remain unaffected for both airlines. Royal Jordanian and Aeroflot are also maintaining schedules. Royal Jordanian will fly daily via Shannon to the US from Amman, Jordan, during the winter. "Our flights are very full out of Jordan," Ms Susan Fitzpatrick, passenger sales manager, said.

Mr Tom Keating, Aeroflot's customer relations manager, said the airline would fly a weekly Moscow-Havana run via Shannon during winter.