Shannon to urge split from DAA

Shannon Airport's board is set to call on the Government today to speed up the process of splitting up the State's three airports in the latest twist in the row over the Aer Lingus decision to switch to Belfast.

It emerged yesterday that the Dublin Airport Authority (DAA) knew in June that Aer Lingus was considering dropping its Shannon-Heathrow services in favour of flights from Belfast to the London hub.

However, the DAA could not reveal this because the airline gave it the information in strict confidence. The Aer Lingus decision sparked huge controversy when it was announced in August.

Shannon's board is due to meet today, and director Tadhg Kearney told The Irish Times last night that it was likely it would issue a statement demanding that the Government move ahead with the plan to establish Dublin, Cork and Shannon airports as independent companies.

"We want to see that process happening very, very quickly now," he said. Mr Kearney added that Shannon should be independent, debt-free and fully funded.

While the three airports have their own boards, the DAA is still responsible for all three. They are ultimately due to be made independent of each other.

That move is provided for under legislation passed in 2003, but its implementation requires Cork and Shannon to have viable business plans in place first.

Shannon's plan depends on it cutting its costs. Earlier this year it completed a deal with trade unions that will pave the way for this.

The DAA has funded a €40 million capital investment programme at Shannon, and it is understood that the authority has approved a further €12 million spending plan for next year.

Mr Kearney argued yesterday that the DAA's failure to tell Shannon that Aer Lingus was considering pulling its Heathrow service was "a breach of trust and corporate governance standards".

However, it is understood that when the DAA learned that Aer Lingus was considering this, the airline had yet to make a decision.

According to a report in yesterday's Irish Examiner, the authority was told in the context of a query from the Department of Transport, but was informed in strict confidence.

Tourism and business interests in the west and mid-west are opposed to the Aer Lingus move. At the weekend, 4,000 people rallied in Limerick against the plan.