Shannon fund set up to attract new airlines

PUBLIC AND private interests in the west of Ireland have established a “war chest” to attract new airlines and routes to Shannon airport, it emerged yesterday.

At a tourism conference at Bunratty, Co Clare, yesterday, chief executive of Shannon Development Dr Vincent Cunnane announced the establishment of the new airline route development fund, stating that the initial target of the fund will be to add 150,000 new passengers.

Dr Cunnane declined to say how much has been raised for the fund, but did say that “it is ready to use in the morning if necessary”.

He added: “The funds will be at an appropriate level to allow the airport win new business. Airlines’ demands are increasing and what has to be put up front is increasing. The ability to have that extra bit, to pull something over the line, that is where we need to be at.”

He said stakeholders in the private and public sectors in the midwest region have shown “a very high level of commitment to the fund.

“We have money in the pot already, and we want to grow that fund to the point where it can get the key target area hubs in mainland Europe.

“It is a rolling fund and will be depleted and replenished on an ongoing basis by people and stakeholders of the region in order to ensure the sustainability of the airport in the long run.”

The move comes in the context of declining passenger numbers at the airport this year and expectations that Minister for Transport Leo Varadkar is to bring to Government in January a memo on the future ownership of Shannon and Cork airports. Dr Cunnane told the conference he would be “delighted” if the Government allowed the separation of Shannon from the Dublin Airport Authority (DAA) and put in place a regional ownership model.

“This would give the region the opportunity to have a greater role in the day-to-day operation of the airport. That will throw down a challenge to everyone here,” he said. Pat Daly of Shannon Development’s tourism division said the agency is setting “an aggressive operational target of 590,000 new visitors to the region in 2012”.

“We will build on our tourism successes in 2011, which saw us deliver an additional 310,000 bed nights and €30 million in additional tourism revenue for the Shannon region as a direct result of initiatives generated and delivered exclusively by Shannon Development,” he said.