New Scheme Will Finance Aviation Developments At Shannon

New hangar facilities that will allow Shannon to develop as an aviation services centre will result from a new 'capital allowance scheme'. I've included the full text of my press release in this post.

Clare Senator, Tony Mulcahy has said he expects the construction of new hanger facilities at
Shannon Airport could begin as early as 2013 as part of efforts to attract aviation business. The Shannon-based Fine Gael Senator confirmed he has received details from the Department of Finance of a 7-year Government-backed accelerated capital allowance scheme which will promote the construction of certain aviation-specific facilities at the Airport.

He said ‘significant movement’ is likely in relation to the development of new hanger facilities and ancillary services once the scheduled separation of Shannon Airport from the Dublin Airport Authority (DAA) takes place on 31 December. The new entity, which will include the airport and surrounding landbank, will be tasked with developing a proposed international aviation centre of excellence at Shannon. “It is abundantly clear from a report prepared by the Management of Shannon Airport and assessed by KPMG, that the viability of Shannon Airport and surrounding businesses cannot be justified through passenger growth alone,” explained Senator Mulcahy. He continued “By introducing a capital allowance scheme, the Government is underlining its commitment to marketing Shannon as a one-stop-shop for all airline needs, including use of hangars to house aircraft and pilot-training, but primarily for the aircraft maintenance, repair and overhaul (MRO) sector.

It is clear that Shannon is well positioned to develop as an aviation services centre considering the availability of zoned development lands, established expertise, geographical location on the western edge of Europe, availability of highly qualified third level graduates, and its aeronautical engineering courses, flexible workforce, time zone and language. “Currently, the Shannon Free Zone, which includes the airport, employs approximately 7,000 individuals. There are 40 aviation companies there, employing 1,600 people. It is critically important for the future viability of Shannon Airport and the surrounding area that given the global nature of the aviation business and the reality that companies can relocate to numerous other aviation centres that every effort be made to protect existing employment levels at anchor companies, as well as attract new aviation business. I believe that the promotion of Shannon as an International Aviation Services Centre (IASC) will allow this to happen. “The first and main requirement at Shannon is new hangar space. The Department of Finance has informed me that three hangars are needed urgently and that there are potential tenants already lined up for a further three.

Under the plans announced by the Government, it is proposed that the soon-to-be-created Shannon entity will rent the hangars at commercial rates, either to airlines or MRO companies, most of which are SMEs. I believe that the impending creation of the new entity and the planned use of existing and newly constructed hangars and ancillary facilities presents significant job creation potential in the sector,” concluded Senator Mulcahy.