Varadkar mulls afresh the future of Shannon

WHILE WE await Minister for Transport Leo Varadkar’s verdict on the future of Shannon Airport, there is news that its parent entity, the Dublin Airport Authority (DAA), has advised the Government that the Co Clare facility could attract more traffic as a stand-alone entity.

Varadkar has circulated a memo to other departments, which, among other things, notes that the DAA believes that Shannon Airport could gain an extra 250,000 passengers a year as an independent operation.

There is a caveat – namely, that routes might simply be switched to Shannon from Cork and Dublin by Ryanair. A similar scenario could apply to Kerry and Knock.

Michael O’Leary could then make a big play on how Ryanair had delivered growth to Shannon once the dead hand of the DAA was removed.

Varadkar has been mulling over his options for Shannon and Cork since December, following a report on their separation from the DAA by consultants Booz. Booz said a move to a local concession model at Shannon would offer the “greatest opportunities” for developing a niche business there. This would involve the composition of a “local authority holding entity” that could include Clare and Limerick county councils, and possibly Shannon Development.

Last Friday, at the launch of Transaero’s acquisition of an aircraft maintenance facility in Shannon, Vincent Cunnane, chief executive of Shannon Development, told me of his desire that the State agency play in the future of the airport.

“Certainly, I hope we will have a significant part to play in that,” he said.

“The airport is a big economic driver in the region. Shannon Development is very clear on that. We would like to see it owned by the region.”

“I do do believe we will be a significant partner in this new structure,” Cunnane added.

This remains to be seen, especially as there has been speculation about the future of Shannon Development, an IDA-style agency for the mid-west.

It’s still not clear when Varadkar will announce his decision. It was promised for early in the new year, then before Easter and then before the end of April.

A spokesman for the department of transport yesterday told me it would be “soon”.