A confidential report indicating that Cork and Shannon airports will be unprofitable if a proposed restructuring of Aer Rianta goes ahead bears out union claims that the break-up plan is "crazy", SIPTU claimed today.
The proposal to create three separate companies to govern Dublin, Shannon and Cork airports is likely to include the consolidation of Aer Rianta's existing debt at the profitable Dublin operation.
But elements of a Price Waterhouse Cooper (PWC) report commissioned by the Department of Transport were revealed by the Labour Party leader Mr Pat Rabbitte on Wednesday, indicating that both Cork and Shannon will take some time to become profitable.
Further details of the report emerged today indicating that Shannon will not be profitable until 2006 even if its debt burden is eliminated. RTE claims to have seen the report which Aer Rianta has asked not to be circulated because it contains commercially sensitive information.
RTE's report said the PWC analysis showed total debt at Aer Rianta would rise to over €400 million by 2006. SIPTU national secretary, Mr Michael Halpenny, today said the figure was double that which had been previously been suggested.
"This bears out everything we have been saying, this is a crazy plan. This is a major problem for the Government and seriously questions their credibility," Mr Halpenny said.
The Minster for Transport, Mr Brennan, today said that Aer Riana's international business - such as duty free shops at foreign airports - would likely be transferred to Shannon, boosting its revenues, RTÉ reports.
And the Department maintains that one individual at PWC carried out analysis of projections and the findings do not constitute a full-scale report.
Mr Rabbitte said on Wednesday that the PWC report also indicates cost difficulties for the two smaller airports caused by the loss of economies of scale.
Today he said: "This break-up must be resisted until, at the very least, a sound business case has been made for it in the interests of passengers, employees, and taxpayers."
Union officials say they will raise the issue at scheduled talks with the Department of Transport on Tuesday.
Meanwhile, the general secretary of ICTU, Mr David Begg, has written to the Taoiseach, Mr Ahern, asking for a copy of the report.