Shannon airport executive chairman resigns

Shannon airport's executive chairman, Pat Shanahan, resigned yesterday in protest at the Dublin Airport Authority (DAA) not informing him of Aer Lingus's plans to end its Shannon-Heathrow service.

The Shannon Airport Authority (SAA) board yesterday held an emergency meeting in response to revelations that the DAA and the Department of Transport were aware in June of Aer Lingus plans to transfer its Heathrow service from Shannon to Beflast.

The DAA, which is also ultimately responsible for Shannon and Cork airports, did not pass on the information at the time as it says it was given on a strictly confidential basis. The Shannon authority only found about the Aer Lingus decision in August.

Mr Shanahan was appointed executive chairman by the DAA last year. Following yesterday's three-hour meeting, he said that the Dublin authority's failure to inform the SAA of the Aer Lingus plan for six to eight weeks had made his position untenable.

He said: "I felt that as executive chairman of Shannon airport I should have been told that one of our major customers was considering withdrawing a major service.

"That to me was significant and I was very disappointed and consequently I needed to review that situation and I have.

"I think that it was a serious breach of confidence between the DAA and the SAA that we were not told and I think it is important that that breach of confidence is repaired rapidly."

As executive chairman, Mr Shanahan had a role in the airport's day-to-day management. He also played a part in negotiating a cost-cutting plan with the airport's unions.

While he is leaving the executive post, he is not resigning as chairman of the SAA itself. The Government appointed him to that role.

As chairman of the SAA, he will oversee the process by which Shannon will become independent of Dublin, which has been Government policy for the last four years.

Mr Shanahan said that the airport wants this to happen "over the coming weeks". The airport is in the process of putting together a business plan, which is a prerequisite of splitting it from Dublin.

"Shannon needs to be separated and the Government and the DAA need to work with us very aggressively over the coming weeks to ensure that that separation takes place," he said.

A spokeswoman for the Department of Transport said that Mr Shanahan's resignation is a matter for the SAA.

The DAA said there are no plans to appoint another executive chairman. A statement said the current management team would continue to work to restore the airport to profitability.