Great news for Shannon

mayotom

Announcement expected on Shannon Airport authority - RTE News

There are strong indications that the announcement will include the establishment of Shannon Airport as an independent authority, to include its adjacent industrial zone, under a single management model.

finally they may be released from the shackles of the DAA and hopefully make the future brighter for Shannon

mayotom

mayotom wrote: »

Announcement expected on Shannon Airport authority - RTE News



finally they may be released from the shackles of the DAA and hopefully make the future brighter for Shannon

Hopefully the taxpayer will not have to bail them out for the full 100 million debt, instead of adding it as a levy to passengers that actually use the airport and its services as per the Knock development levy. (People who can afford to fly can surely afford the minimal fee that keeps these airports without sufficient passenger numbers running as a local service)

Unless they can secure more business there will also likely have to be job losses or wage reductions as well to reduce the yearly 8 million deficit. But it at least will allow them to decide there own future and if ran properly has good potential.

Henry Ford III

It's an important step, but balancing the books will require new airlines and routes, and a significant cost reduction programme too.

kilburn

well it is bein amalgamated with Shannon Development and taking the Shannon free zone into it also so I am sure this was done to negate the annual loss by supplementing it with the rental income and estate contributions that DEvco receives

jeepers101

With regards to air traffic controller jobs does this mean that the two year training program will no longer take place in Shannon?

highlydebased

jeepers101 wrote: »

With regards to air traffic controller jobs does this mean that the two year training program will no longer take place in Shannon?

That is run by the IAA and not the DAA so I don't see any change there.

Limerick91

can somebody please explain why this is such a good idea for Shannon

lotusm

Good for the Taxpayer more like... has to stand on its own two feet from now on in... has to cut costs by 70% then maybe it will be profitable :rolleyes:

highlydebased

Limerick91 wrote: »

can somebody please explain why this is such a good idea for Shannon

Because it will be run on a commercial basis and not a political one.

Sterling Archer

Queue the daa going that's ours that's ours

Zonda999

About time for this to happen indeed. I think its time to face p to the fact that all our current airports are not viable in their current form.. Shannon really suck out though, now it has a chance to cut its costs, pretty substantially I would say, and try to attract some new routes

donvito99

Standby for Timmy Dooley comment!

pclive

Im sure Ryanair will be looking for another deal?

Sterling Archer

donvito99 wrote: »

Standby for Timmy Dooley comment!

Pathetic really

munchkin_utd

pclive wrote: »

Im sure Ryanair will be looking for another deal?

indeed

although what that then would mean for their flights out of the other western seaboard airport like Knock/ Kerry/ Cork who knows.

Neworder79

Ryanair statement

"Transferring Shannon from one failed semi-state, the DAA, to another, SFADCO ( Shannon Free Airport Development Company), means that there will be no real change or reform nor radical cost reduction or efficiencies, but rather lots of continuing political interference and bureaucratic mismanagement," the statement said.

"Shannon’s traffic has fallen from over 3.6m in 2007 to 1.6m in 2012 and Ryanair does not believe that a semi-state company like SFADCO will make Shannon either cost competitive or efficient."

Ryanair’s Stephen McNamara described the "transfer of Shannon from one semi-state quango to another" as a missed opportunity to introduce real change and reform as well as "real competition between the Govt-owned airports".

Read more: http://www.irishexaminer.com/breakingnews/business/ryanair-daa-changes-a-missed-opportunity-550795.html#.T6pw7duUAhw.twitter#ixzz1uNejQFkB

xflyer

Agree with the Ryanair statement completely. Unless they start to get the airport operating on a commercial basis, nothing much will change. Or worse it will end up like Galway, open but moribound.

Delancey

The devil is in the detail - the key question is what happens to the Shannon debt ? If they have to suck it up then they are left in a very poor position.
Doubtless legacy manpower levels ( ie overstaffing ) will require sharp reductions.

gate22

ok so DAA will only be Dublin and Cork, and SNN will be debt free thanks to Dublin covering the €100 million, and crk v snn is even playing field? plus snn will no longer lose 8mil a year?

Joe 90

Deleted User wrote: »

Hopefully the taxpayer will not have to bail them out for the full 100 million debt, instead of adding it as a levy to passengers that actually use the airport and its services as per the Knock development levy. (People who can afford to fly can surely afford the minimal fee that keeps these airports without sufficient passenger numbers running as a local service)

Unless they can secure more business there will also likely have to be job losses or wage reductions as well to reduce the yearly 8 million deficit. But it at least will allow them to decide there own future and if ran properly has good potential.

Why the fixation with a passenger levy? It will only piss off potential passengers and so discourage the low cost airlines from setting up shop.

L1011

Joe 90 wrote: »

Why the fixation with a passenger levy? It will only piss off potential passengers and so discourage the low cost airlines from setting up shop.

If you view that users posts, he vehemently defends Knock's one as not being sneaky (refusal to let airlines roll it in to ticket prices, etc). So maybe he just likes handing cash over at the gate?

Delancey wrote: »

The devil is in the detail - the key question is what happens to the Shannon debt ? If they have to suck it up then they are left in a very poor position.
Doubtless legacy manpower levels ( ie overstaffing ) will require sharp reductions.

Being left in the DAA.

Joe 90

Joe 90 wrote: »

Why the fixation with a passenger levy? It will only piss off potential passengers and so discourage the low cost airlines from setting up shop.

Simply because of fairness in competition. Does this not breach state aid rules ?. How is Knock and Cork supposed to compete when SNN is getting bailed out to the tune of 100 million once there infrastructure is built. No doubt once they spend another fortune on infrastructure in SNN they will have to be bailed out again. Knock should give that one a go. What will happen SNN this time if they make another disaster out of it ??

Will the government give equal amount of money to these other two competing airports ? Very unlikely.... You have one airport running on a tight budget and run efficiently that gets passengers to pay for its infrastructure up the road from one with overstaffing, overpaid and wasteful that is in effect getting bailed out by the taxpayer. I Would be very surprised if there isn't objections from Cork and Knock.

MYOB, If the taxpayer wants to pay that 10 euro development fee in KNock for all passengers that would be great. Just can't see Mr Vradker been so generous. It was Ryanair that refused to allow it into the ticket price. In private enterprise you look after your customer in this case Ryanair. That's where SNN went wrong.

There we go, everyone wants there debt written off now, announcement by Dara Calleary FF TD this afternoon.

http://www.mayotoday.ie/index.php/browse-mayo-news-by-category/business/item/4673-knock-airport-calls-on-govt-to-speed-up-development-plans.html

There you go MYOB they might be an end to the development levy if Vradker just applies the same rules to other airports, which is now been looked for. Im sure you would support this debt write off and the removal of the development fee on all Knocks passengers. Just let the taxpayer pay for it.!!! Can't see the passengers in Knock been so willing to pay this in the future if there is a chance the Taxpayer will pay it.

Suits

I was very much under the impression better fuel/range of airliners largely did for Shannon....what exactly will their sell be? The road network means Shannon is 2 and a bit hours from Dublin, will Shannon really be that much of a beacon that it will convince airlines to put on another route?

I fear that the old "Irish large sense of small scale" syndrome is back.....

globemaster1986

It's about time SNN was separated from the DAA. I firmly believe that the DAA has mismanaged SNN and promoted DUB ahead of it as this was their primary interest. The fact is the people running the DAA in Dublin had no interest in SNN and so deliberately kept its costs high so as it could not compete with/take business away from DUB.

The truth is I hate going to Dublin, it's a h*le of an airport! I would much rather fly out of SNN and would pay a €10 premium for the privilege if necessary. What is needed is to get a LCC like Ryanair or Easyjet in. When SNN was having 3.6M passengers per year it was when Ryanair had 5 aircraft based there, they pulled 3 of them out because of cost disputes, not because they weren't selling the seats!!

Neworder79

When SNN was having 3.6M passengers per year it was when Ryanair had 5 aircraft based there, they pulled 3 of them out because of cost disputes, not because they weren't selling the seats!!

Has to be said that a large part of the Ryanair base growth at Shannon back then was driven by the booming economy and ample discretionary spending of the day. They were also turning the screw on Dublin and Cork with very low fares to stimulate demand.

That day is long gone and it's not clear if many of the old routes would survive todays economy, especially competing with AerLingus Regionals more efficient aircraft, and with many of the old routes now established and profitable at Ireland West and Cork down the road.

globemaster1986

Neworder79 wrote: »

Has to be said that a large part of the Ryanair base growth at Shannon back then was driven by the booming economy and ample discretionary spending of the day. They were also turning the screw on Dublin and Cork with very low fares to stimulate demand.

That day is long gone and it's not clear if many of the old routes would survive todays economy, especially competing with AerLingus Regionals more efficient aircraft, and with many of the old routes now established and profitable at Ireland West and Cork down the road.

I believe many of those routes would be viable! People from Limerick,Clare, Galway and Tipperary would mostly rather fly from Shannon if the routes were there. People are still travelling despite the recession.

Have you seen the Aer Lingus Regional prices?? Not competitive with Ryanair

Neworder79

True Ryanair are generally cheaper and do stimulate demand. But as I said Ryanairs prices in 2006 may not be sustainable today (lower demand, higher fuel costs, higher airport costs).

And the reason Aer Lingus Regional prices are high is they have far less seats to fill on small turboprops and offering more frequency. They can cream off the high yield passengers willing to pay. Those passengers are the profit layer Ryanair would need to sustain low fare routes.

kona

globemaster1986 wrote: »

I believe many of those routes would be viable! People from Limerick,Clare, Galway and Tipperary would mostly rather fly from Shannon if the routes were there. People are still travelling despite the recession.

Have you seen the Aer Lingus Regional prices?? Not competitive with Ryanair

Not from shannon they are not. Compared to Dublin its a ghost airport. Spend a day there and count how many flights with people leave, even then they may not be full.

Aviation is well compeditive, if those routes were viable they will be flown. Although if you threw 100 million at ryanair, im sure they would fly the aircraft empty:pac:


Ive flown out of shannon on EI regional to manchester for a match last december, was well cheaper than Ryanair.

globemaster1986

kona wrote: »

Not from shannon they are not. Compared to Dublin its a ghost airport. Spend a day there and count how many flights with people leave, even then they may not be full.

Aviation is well compeditive, if those routes were viable they will be flown. Although if you threw 100 million at ryanair, im sure they would fly the aircraft empty:pac:


Ive flown out of shannon on EI regional to manchester for a match last december, was well cheaper than Ryanair.

Shannon is a ghost town because the routes are not there. They are not there because the DAA would not cut costs which lets face it, is much needed! Bring those routes back and people will fly from Shannon over Dublin. The routes were still viable when Ryanair pulled them which was after this whole recession started. People still want to travel, still want to go abroad on holidays etc, its one of the things a lot of people have not sacrificed during this recession, demand is there for travel. Currently people go to Dublin and Cork as there is very little choice of routes from Shannon, simple as that.


Seriously, for a match weekend? Everybody knows Ryanair will jack up the prices for matches be it Soccer or Rugby! Aer Lingus do it too just maybe not as much that time:D

Dacian

globemaster1986 wrote: »

...........The fact is the people running the DAA in Dublin had no interest in SNN and so deliberately kept its costs high so as it could not compete with/take business away from DUB.....

So the DAA organisation deliberately ensured a part of their business lost E8M per year?

Those mean Dublin people, refusing to reduce the wages of the honest SNN workers.......


Shannon suffers the same problem as Dublin/Cork. A previous semi-state company with legacy pay scales having to become lean and streamlined to compete in the modern aviation economy. DUB at least had the base level traffic to help it along, SNN however has seen a huge drop in traffic. The SNN stopover historically inflated the traffic stats of SNN. The removal of the Stopover rule has seen the increase in US-Ireland service over the last 3-5 years.

There was a plan to use SNN as the preferred option of Biz Jets so as to avail of the US CBP facilities, an innovative idea in my opinion.
SNN needs to look at increasing its markets from non-commercial passenger flying to allow it to compete against NOC and ORK. Maybe more cargo flying and/or MX operations as evidenced by the new TransAero base.