Shannon Airport would continue to have a viable future under Aer Rianta's management if it underwent a flotation, the chief executive of the company, Mr John Burke, has said.
Following fears expressed by local groups and politicians that Shannon would become sidelined by private investors more interested in the profits to be made in Dublin, Mr Burke said the company, which also manages Cork, was interested in continued investment in regional airports.
It had just completed a £28.5 million terminal building at Shannon, which was experiencing an unprecedented growth rate. "In the context of the airport business, it makes sense for us to invest in Shannon," he said.
The airport now had a capacity to deal with four million passengers annually. Currently, more than 2.2 million passengers were passing through it, he said. An Initial Public Offering (IPO) of as little as 30 per cent of Aer Rianta would give it access to funds.
Aer Rianta favours a 49 per cent flotation of the company but the Minister for Public Enterprise, Ms O'Rourke, prefers a 30 per cent stake being put into private hands. The issue is to come before the Cabinet. "Anything between 30 per cent and 49 per cent would meet our needs," Mr Burke said.
Most local politicians have called for Shannon to remain under State ownership while business people in the region believe the airport should operate independently. Mr Tom Kelly, chairman of the Midwest Business Community Group and head of a logistics company establishing a base at Shannon, said the airport's viability under an independent management structure has not been assessed and an independent study was required.
"I am in favour of an independent, competitive airport. I do not mind whether it is State-owned or who owns it," he said.
He added that growth in air traffic in Britain had been achieved by non-British Airport Authority operators at lesser known airports.
Mr Burke said a locally based management would not have the expertise of one of the world's leading airport companies, would be in competition with it and would not have access to funds for continued development.
The fears which people in the region were expressing about economic marginalisation would be realised "if they go down some of the roads they are talking about", he said.
"The double whammy for Shannon would be not having us owning them but also having us competing against them," he said.
He added that never in Shannon's history had there been such traffic and it was growing "steeply".
Mr Burke is to meet representatives of Clare County Council on Monday, in advance of the official opening of the new terminal building at Shannon.
The general secretary of SIPTU, Mr John McDonnell, has written to all Dail deputies, stating that the maintenance of the present ownership structure of Aer Rianta "is the best option for all concerned".