Investment to attract high-tech firms is part of a strategy to boost the area, writes Tim O'Brien.
While nobody in the Shannon region, or more particularly Shannon Development, will welcome the ending of Shannon airport's "dual gateway" status, the announcement was not entirely unexpected.
Concern in the region centres on the continued availability of air, passenger and cargo services. The loss of those services, the argument goes, could lead to the collapse of interest in the region among foreign multinationals.
That could lead to economic collapse not just in the Shannon Free Zone, the world-famous 243 hectare business park adjacent to the airport, but also fears for the 8,000 jobs created by Shannon Development.
The lack of a detailed study of those prospects was seized on by opponents of the ending of the stopover yesterday. Mr Cullen should have prepared an economic impact assessment, argued Opposition politicians and workers across the region, which includes Clare, Limerick and parts of Kerry, Tipperary and Offaly.
But the truth is that in recent years Shannon Development has invested heavily in the knowledge economy and high-technology infrastructure. It has "wired up" the region, establishing technology centres in Birr, Ennis, Tralee, Limerick and Thurles. A network of world-class locations for business and life have also been established through "Innovation Works" at Birr, Ennis, Limerick, Tipperary and Tralee. It is also the industrial and tourism development agency for the region.
The key issue in yesterday's announcement is whether the success of the region will make the airlines want to continue to service the area, so facilitating the foreign direct investment on which it has thrived.
The investment in high-technology infrastructure and innovation and an expanding transatlantic market, as well as expanding Ryanair services into Europe from Shannon, are likely to give the airport hope that it can be an attractive location rather than a compulsory one.
Aer Lingus has made a commitment to maintain the current level of transatlantic traffic at about 400,000 passengers a year. The opening of three new routes to North American cities offers further potential for the region, particularly in the light of severe capacity problems at Dublin airport over the next few years.
There is some optimism that the additional routes into Ireland will help maintain regular year-round scheduled services between Shannon and Boston and New York. The Aer Lingus commitments are, however, dependent on the services being commercially viable.
Shannon airport itself referred questions to the Dublin Airport Authority, which noted there would be a transitional period until spring 2008.
A spokesman told The Irish Times that the decision underlined the need for Shannon airport "to address its underlying financial difficulties and place itself on a self-sustaining commercial footing".
This was necessary so the airport could continue to attract a balanced and profitable mix of traffic from Britain, Europe and the US and serve as the principal engine of economic and tourism growth for the west of Ireland, the spokesman said.
"This platform, allied to a more rigorous commercial approach, will serve Shannon airport well in a fast-changing aviation environment," he added.
Dublin Chamber of Commerce said the phasing out of the stopover presented tremendous opportunities to increase visitor numbers to Ireland generally.