Brennan to make statement on Aer Rianta plan

The Minister for Transport is expected to make a statement today on his efforts to break up the State airports authority Aer …

The Minister for Transport is expected to make a statement today on his efforts to break up the State airports authority Aer Rianta.

Mr Brennan's plans to break-up the company are being frustrated by the refusal of three of the company's directors to step down.

Aer Rianta chairman Mr Noel Hanlon, Ms Freda Hayes from Cork and Mr Liam Meade from Shannon claim Minister for Transport Mr Seamus Brennan's handling of the situation has been inappropriate.

Mr Brennan intends to dissolve the company into three separate airport authorities for Dublin, Cork and Shannon.

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At a press conference two weeks ago, Mr Brennan said he would appoint a chairman and vice chairman to the three aurthorities. These six people would also sit on the Aer Rianta board for a period of 16 to 18 months until the board was wound up and to oversee the break-up.

But the move was conditional on three current Aer Rianta directors stepping down to make room for the new entrants.

However Mr Hanlon, Ms Hayes and Mr Meade are refusing to step down. They say they were first informed of their dismissal in the news and then wrongly accused being opposition to Government policy.

Mr Brennan has offered to appoint Ms Hayes and Mr Meade, respectively, to the boards of the companies set to run Cork and Shannon airports, if they stand down from Aer Rianta, but this failed to sway the two directors.

Mr Brennan is understood to have met the two directors last week to discuss the matter further. It was made clear that if they did not stand down they would not be appointed to the new boards.

Company chairman Mr Noel Hanlon is understood to be threatening legal action if he is dismissed.

Eoin Burke-Kennedy

Eoin Burke-Kennedy

Eoin Burke-Kennedy is Economics Correspondent of The Irish Times