"Ireland to Break Up Aer Rianta Monopoly"

Tuesday, June 22, 2004

Ireland to Break Up Aer Rianta Monopoly
The Associated Press


DUBLIN, Ireland_The government published a bill Tuesday to break up the
company that runs Ireland's three major airports, a move long opposed by
labor unions and backed by no-frills airline Ryanair.

The State Airports Bill proposes to split the Aer Rianta monopoly into
three competing state-run authorities to operate airports in Dublin,
Cork and Shannon. The government said the move, to be completed after
April 2005, would foster investment and greater efficiency at all three
airports.

Transport minister Seamus Brennan said the bill contained promises that
none of the 2,800 Aer Rianta employees would lose pay or benefits. He
said the government would not transfer authority for the Cork and
Shannon airports until the incoming managers could present credible
plans for developing services, business and profits at both.

"The best way to grow those airports and bring in more flights is to
install strong regional leaderships and do more marketing," Brennan
said.

Union leaders warn that staff could be slashed at Cork or Shannon to
make them profitable and have reserved the right to strike. Aer Rianta
employee representatives say government guarantees on pay and benefits
could prove meaningless if either airport falls into a cash crisis.

"There's no fallback position," complained Peter Dunne, the worker
director at Aer Rianta.

Michael O'Leary, chief executive of Ryanair, welcomed the bill _ and
launched a blistering attack on Aer Rianta.

"No one in Irish tourism should feel any regret at getting rid of the
Aer Rianta monopoly or the board that has run it so badly for the last
10 years," said O'Leary, who accused the company of promoting
"third-rate, Third World airport facilities, ridiculous queues and car
parks that are miles away from the terminal building."

O'Leary also appealed to the government to revive plans for developing a
second terminal in Dublin for use by budget airlines. Aer Rianta earlier
this year said it had decided not to proceed, despite spending 8 million
euros ($9 million) on the project.

The biggest operator currently in Dublin Airport is Aer Lingus, the
state-owned airline that has slashed staff and fares in recent years to
compete with Ryanair.

O'Leary said Ryanair, which operates chiefly from Stansted Airport
northeast of London, would open up 10 new routes from the Irish capital
if the government developed "competing, independent terminals at Dublin
Airport."

Dublin is by far the busiest of Ireland's airports, with more than 14
million passengers last year. Shannon, a popular hub for tourist visits
to the scenic southwest as well as a major refueling point for
Iraq-bound American forces, had about 2 million passengers, while Cork
had less than a million.

On the Net:

Aer Rianta, www.aerrianta.ie


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