The Cabinet is likely to avoid deciding this week whether to support Aer Lingus's axing of the Shannon-Heathrow route at an upcoming extraordinary general meeting (egm) of the company, senior sources have indicated.
In its first meeting since the controversy erupted ministers are set to examine all available options for airline connections to the midwest.
A preliminary report by a group of senior government officials on the impact of Aer Lingus's decision to withdraw the service is due to be discussed at the meeting. While the issue of the egm is likely to be discussed, Cabinet members yesterday said that they were likely to postpone deciding whether to support Aer Lingus until other options had been exhausted.
Minister for Defence Willie O'Dea said that other options were still on the table, such as finding other airlines which could open a route to Heathrow. "The focus is on alternatives to Aer Lingus for Shannon. Connectivity is vital. The egm is a matter of last resort," he said.
The egm poses a significant political problem for the Government, which has insisted up to now that it will not interfere in commercial decisions taken by Aer Lingus.
While the Government - a 25 per cent shareholder in Aer Lingus - can abstain from a vote on whether to support the dropping of the Shannon-Heathrow route, this would place Ryanair in a strong position to win its motion to reverse the decision.
If the Government supports the move it will be criticised by campaigners in the midwest for rubber-stamping the decision. If it opposes the move it will be seen as interfering in the day-to-day running of the company. Aer Lingus is expected to issue a formal response to Ryanair's request for an egm within the next fortnight.
The issue of the State's ownership of Aer Lingus is also likely to be raised at the meeting.
Some ministers are anxious to dispose of the State's shareholding given that future decisions by the airline may embroil the Government in further controversy.
Meanwhile, the work of the group of government officials on the issue will examine all options open to the Government in helping to support connectivity to Shannon. The findings are due to be brought to Cabinet by Minister for Transport Noel Dempsey.
The group will also examine the implications of the removal of the Heathrow route for Shannon Airport and for the region.
Other issues to be considered will be the level of investment in the region provided for under the new National Development Plan and Transport 21.
The officials involved are working under the aegis of the Cabinet committee on housing, infrastructure and public/private partnerships. The group is chaired by a senior official from the Department of the Taoiseach.
Mr O'Dea said he was hopeful that the Cabinet would emerge with a statement expressing its commitment to restoring connectivity to the airport.
