Row over Aer Rianta chief's resignation

A row has erupted between Aer Rianta and the Minister for Transport, Mr Brennan, following Aer Rianta chief executive Ms Margaret…

A row has erupted between Aer Rianta and the Minister for Transport, Mr Brennan, following Aer Rianta chief executive Ms Margaret Sweeney's decision to resign, writes Emmet Oliver.

A statement from the company's chairman, Mr Noel Hanlon, and the board said terms had been agreed with Ms Sweeney on her departure, but Mr Brennan last night expressed his concern over the arrangements.

A spokesman for the Minister said: "The Department has not given its consent or approval to any remuneration package and no decision has been made."

The spokesman said several "legal issues" still had to be considered in relation to Ms Sweeney's position and the views of the Dublin Airport Authority would also need to be sought.

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In contrast, the Aer Rianta statement said Ms Sweeney had exercised the termination clause in her contract of employment with effect from September 30th, 2004.

It said that, over a prolonged period, Ms Sweeney and the board had failed to get "clarification" from the Department of Transport in relation to Ms Sweeney's future.

The package agreed with Ms Sweeney was not revealed by Aer Rianta, although sources estimated it could reach €600,000. According to the last Aer Rianta annual report, the chief executive's position commands a basic annual salary of €242,000, plus director's fees of €13,000.

The seeds of the current dispute go back to the State Airports Act, passed by the Oireachtas earlier this year. This includes reference to the chief executive's position at the Dublin Airport Authority, which takes over from Aer Rianta next weekend.

In the section dealing with the chief executive's role, it states that an open competition will be held to fill the post. The process will be overseen by the incoming chairman of the Dublin Airport Authority, Mr Gary McGann.

However, it is understood that Ms Sweeney is unhappy with this arrangement because she believes it effectively forces her to reapply for her job. However, the Department of Transport claims Ms Sweeney was always an "acting chief executive" ahead of the abolition of Aer Rianta.

The Aer Rianta statement said the company wished to acknowledge the "very significant contribution Margaret Sweeney had made to Aer Rianta and its associated companies, both in Ireland and internationally, during her term as chief executive and deputy chief executive."

It said that she had delivered significant growth and increased the profitability of the company by more than 50 per cent.

"She also spearheaded major technology developments as well as initiating a sharply defined focus on customer service and costs in the airports," it added.

It was also disclosed this week that one of Aer Rianta's worker directors, Mr Peter Dunne, is taking early retirement from the company. Mr Dunne has been a strong opponent of Mr Brennan's break-up of Aer Rianta.