Gordon Deegan

in Shannon

The Minister for Transport, Martin Cullen said yesterday that the cost base at Shannon airport is wrong and has to be put right.

Speaking after his first meeting with the board of the Shannon Airport Authority yesterday, Mr Cullen said: "We need to be realistic, we need productivity increases, we need to be competitive and we need the cost base right." Shannon has incurred operating losses over each of the past three years, while its costs per passengers are €9 - twice that of Ireland's two other state airports, Dublin and Cork.

Last year, the airport incurred a loss of €2.5 million on a turnover of €95 million and the loss could potentially increase in future years. The airport's present debt and accumulated losses are €77 million.

However, Shannon has enjoyed record passenger growth this year with figures up 32 per cent in the first six months on the corresponding period last year.

Asked about the prospects of job redundancies at Shannon, Mr Cullen said: "I fully understand and respect the rights of workers in terms of their concerns about the future. Everyone sees that the future is there and the prospects are good. The cost base at Shannon is wrong, that is the reality and it has to be put right."

Mr Cullen confirmed that along with meeting the board, he also met with representatives of airport unions and the Mid-West Regional Authority yesterday.