Bill approved for State-owned Shannon Group

Legislation setting up a new State-owned commercial body for Shannon, combining both the airport and development agency, will be published shortly after the Government approved the Bill yesterday.

The new law will include a provision implementing the part of an international agreement, the Cape Town Convention, that gives security for aircraft fianciers and lessors, a key industry in both Shannon and Dublin.

The State Airports (Shannon Group) Bill, 2014 is designed to give effect to the Government decision to set up a new commercial State company that will be made up of Shannon Airport and a restructured Shannon Development, the region's industrial development agency.

The airport became independent from the Dublin Airport Authority (DAA) early last year while Shannon Development, which is to be renamed Shannon Commercial Enterprises, has been under review.

Minister for Transport Leo Varadkar said that the legislation would mark a further milestone in restructuring State assets in Shannon. "Aviation is hugely important to the mid west and Shannon Group will aim to further develop aviation-related activities and services in and around Shannon Airport as set out in the Shannon Aviation Business Development Task Force Report," he said.

Shannon Airport chairwoman, Rose Hynes, also said the approval of the legislation was an important step. "The airport is in growth mode after stemming, in our first year as an independent entity, five years of successive passenger decline," she added.

The law will also provide for changes to the Irish Airlines (General Employees) Superannuation Scheme, whose €780 million deficit is the subject of an ongoing dispute involving the DAA, Aer Lingus, unions and trustees.