Legal challenge to airline decision considered

The controversial decision by Aer Lingus to end its service from Shannon airport to Heathrow may face a legal challenge.

The controversial decision by Aer Lingus to end its service from Shannon airport to Heathrow may face a legal challenge.

A regional campaign group spearheading opposition to the plan, which was established yesterday at a meeting of workers, business leaders and tourism interests in the west and mid-west, said a court challenge was one of a number of options being considered.

The group is also to seek an extraordinary general meeting of the board of Aer Lingus in an attempt to have the decision to end the Heathrow service rescinded.

It also wants a meeting with Taoiseach Bertie Ahern and a comprehensive statement of support for the region from the Government.

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The group said that, if necessary, the Dáil should be recalled to discuss the controversy.

Over 300 workers, union representatives, business leaders and tourism interests attended the meeting at Shannon airport to oppose the Aer Lingus plan, which is scheduled to come into effect from next January.

About 20 politicians from all the main parties, including Fianna Fáil Minister of State Máire Hoctor, attended the meeting. Among the companies and enterprises represented were GE, Analogue, Element 6, Nortel, Shannon Aerospace and Dromoland Castle.

The meeting was also attended by a number of senior local authority representatives. A steering group is to be established next week to plan the campaign of opposition.

Speaking at a press conference after the meeting, Shannon Development chairman John Brassil said there was considerable legal opinion that questioned the legality of the decision by Aer Lingus management to end the Heathrow service.

Shannon Regional Tourism Board chairman Michael Houlihan, a solicitor, said when Aer Lingus was floated there was provision made in the prospectus, memorandum and articles of association of the company that the landing "slots" at Heathrow would be protected.

While this was provided for in the documentation, it was clearly not recognised in the decision by management to end the Shannon -Heathrow route.

Mr Houlihan said the legal side of the issue would be looked at closely by the group and an attempt to seek a judicial review of the management's decision was "definitely a possibility".

Mr Brassil said Fianna Fáil TD for Clare Timmy Dooley, who spoke on behalf of party representatives present, had expressed disappointment that there had not been a comprehensive statement by the Government. The meeting was held in private.

David Silke of Galway-based computer company Nortel, which employs 300 people, said the plan to end the Shannon service was one of the most significant issues that the company had had to deal with in Ireland.

He said there were two key issues from a business perspective - the impact the Aer Lingus decision would have on connectivity and its long-term strategic implications for the west.

Ken Sullivan of diamond distribution company Element 6 said the Aer Lingus decision had been greeted with incredulity by its executives and board, but the company aimed to be part of the campaign to oppose the move.

Joe Cunningham of the trade union Siptu said the potential threat to jobs in the region was hard to quantify but the situation was extremely serious, both in relation to existing companies and for future investment.

He acknowledged there was a concern that Michael O'Leary of Ryanair (which owns 25 per cent of Aer Lingus and which is seeking to join forces with the Government to oppose the ending of the Heathrow service) had "another agenda".

"The chances of me standing up and defending Michael O'Leary are nil.

"But on this occasion let me be clear. If at the end of the day as a result of an extraordinary general meeting [of shareholders] we can get this decision reversed, well then whosoever supports it, so be it, we are quite happy with that," said Mr Cunningham.

Martin Wall

Martin Wall

Martin Wall is the former Washington Correspondent of The Irish Times. He was previously industry correspondent