SHANNON
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The papers are claiming Shannon Development will take over management, losing it's enterprise role, and DAA will retain the debt.
So independence and a €100m+ bailout for SNN, not a bad days work, puts the hoopla about piddly regional airport grants last year in perspective.
So independence and a €100m+ bailout for SNN, not a bad days work, puts the hoopla about piddly regional airport grants last year in perspective.
Join Date: Jan 2010
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Join Date: Dec 2010
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This will be interesting. Shannon won't become profitable overnight - or anytime soon without serious restructuring - so I hope the Government lay down the law and tell them that this bailout is the last one they will get. If they want independence from the DAA, they will need to take the responsibility that comes with it.
That will involve serious streamlining and significant pain for many of the airport's staff. 24 hour opening is a financial drain that could and should get the drop also. If the airport can cut costs and balance the books there is potential for it as a commercial airport. But how will local politicians react to the cuts that will be needed to get the airport into financial shape without the DAA alongside to pick up the tab?
That will involve serious streamlining and significant pain for many of the airport's staff. 24 hour opening is a financial drain that could and should get the drop also. If the airport can cut costs and balance the books there is potential for it as a commercial airport. But how will local politicians react to the cuts that will be needed to get the airport into financial shape without the DAA alongside to pick up the tab?
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I note your view on goverment support for noc is somwhat different to snn.....any reason why
To be fair, if Shannon needs a smaller Knock sized subsidy in the first few years to aid the transition that's fair enough, this changeover cannot be achieved overnight - but surely if Shannon is having its very significant debts cleared the Government needs to get some assurance that they won't just go and build similar debts up again.
Just to clarify, I'm not having a dig at Shannon or anything here, grand airport, used it regularly when there were no Scottish flights to/from Knock, but it has to live within its means like every other airport. Galway is evidence of what must be allowed to happen if an airport does not do this.
No idea why my post is coming up before yours by the way...I'm not psychic, this was posted at 1:12 pm.
Join Date: Dec 2010
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''CHANGE OF CONTROL FROM DAA TO SFADCO IS LIKE MOVING DECK-CHAIRS ON THE TITANIC - THE SHIP STILL SANK''
Loving that comment
Fair point from Ryanair though transferring an airport from one semi-state company to another is not going to swing it back to growth, although that remains to be seen. 
see more.. Ryanair Criticises Govt Failure To Sell Shannon Airport
Loving that comment
Fair point from Ryanair though transferring an airport from one semi-state company to another is not going to swing it back to growth, although that remains to be seen. see more.. Ryanair Criticises Govt Failure To Sell Shannon Airport
Join Date: Jun 2010
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debt write off
Agree, great days work for Shannon airport, i cant get my €100k morgage written down and the gov can in one go decide to write off a €100m. I wonder if the boys in Europe know about this one. Anyway fair play to them.
Join Date: Nov 2011
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The SNN debt has not been written off to the taxpayer. The DAA are picking it up along with 700 million more debt they already have. Leo Varadkar has just confirmed my suspicion in that the sale of Shannon was not considered as they believe Shannon to be one of the countrys strategic assetts and even though operation has moved to SFADCO the airport is still in state ownership. I believe this decision, despite MOL's oprinion, to be the best in the long term for SNN as SNN is more than a local airport and we have an obligation to aviation in the western world to keep it open. Space is not a problem around the airport with huge land resources which can now be made available for future spin off avaiation related enterprises. I just hope that they have the good sense to not let Ryanair in again on the same deal as before.
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Does Shannon really need to stay open 24 7. There are almost as many emergency landings in Dublin nowadays. Does anyone know the thinking behind Cork staying open all night. There's not even a handling agent available from midnight to 0600 even if someone did decide to land there.
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Conair, we as a country have no obligation to keep any one airport open for anyone else. There is nothing that Shannon can do that couldn't be done from another airport if necessary. Shannon needs to stand on it's own two feet and operate commercially just like any other airport.
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Conair, the €100m debt write off for Shannon is the same as a grant
from the Irish government who is the only shareholder in the DAA and by default from us the Irish tax payer. This is another dividend that the government will not receive (us) from the DAA as a result of all the poor management and excessive spend on airport infrastructure over the past years.
We all pay in the end for this
from the Irish government who is the only shareholder in the DAA and by default from us the Irish tax payer. This is another dividend that the government will not receive (us) from the DAA as a result of all the poor management and excessive spend on airport infrastructure over the past years.
We all pay in the end for this
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Kinocker.Im afraid yo may be wrong there. We are obliged to keep it as strategic airport on the european seabord. The same as Gander is maintained in Canada and it has no commercial traffic atall. Of course if SNN closed they could all divert into NOC instead is probably your thinking. Ther harsh reality is that some services will remain open for business even if they never make money. If the DAA never ever pay off the 700 million debt do you really think that Dublin Airport will close?
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It' s a great country where airports can have their debts written off as if there's no tomorrow! Fair play to Darragh Callery for requesting a similar write off for Knock! it's worth a try as it won't be easy for FG to hold 4 of the 5 Mayo seats next time!
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Conair, I certainly wasn't suggesting Knock for diversions, that isn't at all realistic as the infrastructure couldn't cope. This isn't a SNN v NOC thing by any means.
The difference between Shannon and Gander is that Gander is on an isolated island off the coast of mainland Canada, hundreds of miles from major airports and hubs. It is virtually a mid point for many transatlantic flights and has an important role to play. Shannon, on the other hand, sits within the British Isles and is very close in relative terms to mainland Europe also. Diversions etc. into Shannon could easily be dealt with at numerous other airports in this part of the world, they sometimes go to Shannon because it's the first one off the Atlantic, but if it didn't exist they'd just go somewhere else, loads of available options. Ireland isn't the only country in western Europe, believe it or not.
The idea that Shannon plays some kind of pivotal, irreplaceable role in European aviation is no more than a myth. It is occasionally useful, but it is by no means vital and cannot be used as an excuse for running up €100m of debt. It needs to pay it's own way to the same extent the other airports do.
The difference between Shannon and Gander is that Gander is on an isolated island off the coast of mainland Canada, hundreds of miles from major airports and hubs. It is virtually a mid point for many transatlantic flights and has an important role to play. Shannon, on the other hand, sits within the British Isles and is very close in relative terms to mainland Europe also. Diversions etc. into Shannon could easily be dealt with at numerous other airports in this part of the world, they sometimes go to Shannon because it's the first one off the Atlantic, but if it didn't exist they'd just go somewhere else, loads of available options. Ireland isn't the only country in western Europe, believe it or not.
The idea that Shannon plays some kind of pivotal, irreplaceable role in European aviation is no more than a myth. It is occasionally useful, but it is by no means vital and cannot be used as an excuse for running up €100m of debt. It needs to pay it's own way to the same extent the other airports do.
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Well if the plan is for the airport to be a profitable cargo hub and a centre for excellence in aircraft maintenance, then why shouldn't it stay in state hands? At least the taxpayer is likely to receive a dividend from the operation then.
I think its a bit hypocritical for Ryanair to be moaning at Aer Lingus last week for not paying a higher dividend to the government, and yet this week they think any future profits to be made at Shannon should go to the private sector.
I think its a bit hypocritical for Ryanair to be moaning at Aer Lingus last week for not paying a higher dividend to the government, and yet this week they think any future profits to be made at Shannon should go to the private sector.