Shannon Development has called for new initiatives to ensure that Shannon Airport survives as a thriving international airport.
In a submission to the Joint Oireachtas Committee on Public Enterprise and Transport, the development agency's chief executive, Mr Kevin Thompstone, warns that regional growth imbalance will continue unless countervailing policies are introduced.
Meanwhile, Limerick Chamber of Commerce has called for a national transportation policy to be devised following a survey of 518 companies in the area that found business is being lost because of the lack of airline services.
Shannon Development has reiterated its recommendation for the airport to have a local management role and called for increased investment in the region's digital infrastructure, and tourism and industrial sectors.
The situation has been worsened by the ruling of the Commission for Aviation Regulation, resulting in higher charges at Shannon and Cork, and the plan to build a low-fare terminal in Dublin.
"The recent Government decision on a low-fare airline terminal at Dublin will attract further services to the capital, and make Shannon and Cork less attractive for carriers from a cost/operational point of view.
"Radiating everything into and out of Dublin does not support regionality, erodes Shannon Airport's catchment base and causes significant congestion and deterioration in quality of life in Dublin," Mr Thompstone states.
Between 1993 and 2001, Dublin Airport's share of Aer Rianta terminal traffic rose from 77 per cent to 79 per cent. Shannon's declined from 13 per cent to 11 per cent.
"The western regions of Ireland account for one-third of national economic activity but the range and levels of access do not reflect this or meet the need for international connectivity," he says.
According to the agency's analysis of business trips to European capitals, a traveller from Shannon needs to stay overnight if visiting Paris, Amsterdam or a British regional city.
"There is an interdependency between the industry and tourism business base in the west of Ireland and Shannon international airport," Mr Thompstone states.
The chamber survey found customers from Britain and Europe unwilling to engage in two- to four-day round trips to the region.
Mr Thompstone believes "Atlantic alliances" need to be created linking Cork to Donegal via Limerick and Galway, "as a significant counter pole to Dublin".
Limerick Chamber of Commerce's new president, Mr Tom McInerney, former Aer Lingus manager of corporate affairs in Shannon, said there was a need for a national transportation policy.
"Currently, individual aspects of transportation are handled separately within individual government departments and agencies. There must be an integrated approach."
According to the chamber's survey, businesses believe national and local Government are unaware of the importance of the airport to industry and tourism.
London is the most important route from Shannon, with 83 per cent using it. In addition, 53 per cent used it to fly onto to other destinations. A similar percentage use the Shannon-Dublin links to fly onwards.