Shannon plays down report of BMI deal

The Shannon Airport Authority (SAA) has played down reports that it is close to signing a new deal with British Midland (BMI) …

The Shannon Airport Authority (SAA) has played down reports that it is close to signing a new deal with British Midland (BMI) that would see the carrier take over the Shannon to Heathrow routes, which Aer Lingus is scrapping.

A report in today's Limerick Leadernewspaper suggested that negotiations involving SAA chairman Pat Shanahan, Minister for Defence Willie O'Dea and the airline were at a "very advanced stage".

But this evening Mr Shanahan said the authority was talking to a number of different airlines and while a "bit of progress" had been made, he said it would be several weeks before any outcome could be expected.

Earlier this month BMI's chief executive Nigel Turner said it was unlikely that BMI would be the airline to replace Aer Lingus.

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The fallout from Aer Lingus's decision to transfer its Heathrow slots from Shannon to Belfast is likely to top the agenda at tomorrow's Cabinet meeting.

Limerick East Fine Gael TD Kieran O'Donnell dismissed speculation on a possible BMI deal as a government smokescreen designed to take the heat out of tomorrow's Cabinet meeting.

Mr O'Donnell said: "The government cannot abdicate their responsibility to protect the strategic interests of the entire country."

"Hence, there is only one option to be taken at tomorrow's cabinet meeting, namely to use their 25.4 per cent stake to vote for reversing Aer Lingus's decision on the Shannon to Heathrow slots".

He called on Government ministers, deputies, senators and other public representatives in the west and mid-west regions "to clearly show the courage of their convictions by resigning en-bloc from their parties" if the Government did not support and move to protect the Shannon to Heathrow slots at tomorrow's meeting.

Eoin Burke-Kennedy

Eoin Burke-Kennedy

Eoin Burke-Kennedy is Economics Correspondent of The Irish Times