Cabinet to get report on Aer Lingus Shannon flights decision

The Cabinet will tomorrow consider the findings of a report by senior officials into the impact of Aer Lingus's decision to withdraw…

The Cabinet will tomorrow consider the findings of a report by senior officials into the impact of Aer Lingus's decision to withdraw its Shannon-Heathrow route.

It is likely to conclude that Shannon airport is already well connected internationally and may also propose ways to prioritise transport and infrastructure developments in the region, according to senior political sources. The question of the impact of the loss of the Heathrow route on the midwest region is expected to be the subject of further research.

An interdepartmental group was commissioned by Taoiseach Bertie Ahern earlier this month after almost two weeks of ongoing controversy over the Government's failure to intervene in the issue.

Some Cabinet Ministers have played down expectations arising from tomorrow's meeting and have suggested that little will emerge, apart from a statement expressing support for maintaining connectivity to Shannon.

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The Cabinet is likely to avoid deciding whether to support Aer Lingus's axing of the Shannon-Heathrow route at an upcoming extraordinary general meeting to be held by the company.

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 Aer Lingus move. 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 this week's Cabinet 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.

Carl O'Brien

Carl O'Brien

Carl O'Brien is Education Editor of The Irish Times. He was previously chief reporter and social affairs correspondent