New CEO Appointment is Great News for Shannon Airport

Neil Pakey’s appointment as CEO is a landmark moment for the Mid West Region. There were fewer potential candidates better qualified or accomplished than Mr. Pakey to take on the role of growing business at Shannon Airport.

If there is anyone who can reinstate Shannon Airport as a truly international airport, it’s Neil Pakey, Mr. Pakey’s track record, particularly his central role in establishing Liverpool John Lennon Airport as one of Europe's fastest growing airports, is excellent news for the people of the West of Ireland. Mr. Pakey has previously rapidly expanded the level of services and quality connectivity from Liverpool Airport and other airports during his career. He has also shown his ability in forming mutually beneficial and strong relationships with airlines ensuring that airports under his management have been robust enough to deal with any downturn in the economy or operational decisions by any one airline operator. Backed up by Airport Chairperson Rose Hynes and her Board of Directors, I think Mr. Pakey will thrive in his new role.

The appointment caps off a positive period of growth at Shannon Airport.  The short period since autonomy was granted to Shannon Airport has seen some very significant, positive developments take place at the airport. The appointment of a CEO follows the naming of the Board of Directors, each accomplished in their own field of business, and also comes on foot of a series of other European and American service additions at Shannon.

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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.

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Good Supports On The Way For Aviation Services

The following is an extract from Minister Noonans' speech. "The Task Forces established to consider what was needed to effect independence for Shannon Airport concluded that there is potential for significant job creation in the aviation sector in Ireland. To facilitate the sector, I will be putting in place measures to facilitate the construction of hangers and ancillary facilities that will be key to attracting additional aviation sector organisations to the country. My Department will also examine, together with the Department of Transport, Tourism and Sport and the Department of Jobs, Enterprise and Innovation, the feasibility of new funding sources for airlines and aircraft financing and leasing companies. Further details should become available shortly. While these measures were proposed by the Task Forces for the new International Services Centre in Shannon, I am making the measures available to all other airports who wish also to avail of these measures."

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Autonomy Will Allow Shannon Airport To Grow

It has been a long time in the making but today is a big day for Shannon and the region.

On top of all the monumental news in relation to the airport and the Free Zone, I also want to throw another idea into the melting pot. Assuming that we get an opportunity to rename the airport, I'm suggesting we name it after the great visionary who started it all and call it "Shannon Brendan O’Regan Airport". What do you think?

I've put out a press release on the events and you can read it here in the rest of this post.

Shannon-based Fine Gael Senator Tony Mulcahy has welcomed the Government’s decision to grant full autonomy to Shannon International Airport and merge Shannon Development and its existing tourism, enterprise and industry roles with other regional development agencies, including the IDA, Enterprise Ireland, Failte Ireland and the new Airport Management structure.

The former Mayor of Shannon and Clare said autonomy would enable Shannon Airport to compete independently for business “without the dead hand of the Dublin Airport Authority (DAA)”. He said the Government announcement in relation to an autonomous Shannon Airport and Free Zone marked the culmination of years of lobbying from public bodies, regional development agencies, private organisations and politicians in the Mid West Region.

“As a member of Clare County Council in 2007, I was one of 32 Councillors to back a motion requesting that Shannon be freed from the shackles of the DAA after the Authority’s failure to prevent Aer Lingus from axing its Shannon to Heathrow services. It has taken five years for autonomy to be finally granted and I think this is a momentous moment not only for the airport but also for the wider Mid West Region,” Senator Mulcahy said.

He continued: “The focus now turns to identifying the exact make up of the new management structure at the airport, which I believe should include a representative from each of the major agencies in the Mid West as well as a selection of community and business leaders. The best way of driving the future development of the airport and the surrounding Free Zone is to have local and regional experts from the fields of business, tourism and aviation at the helm.”

On the issue of whether debt-free status would be granted to Shannon, Senator Mulcahy stated: “Discussions are presently taking place in relation to the debts that have built up at Shannon Airport through the years. I am confident these considerable debt issues will be resolved in the coming months and that the facility and its new management structure will be well placed to develop a new and progressive marketing and development strategy for the Airport and Free Zone by the time full autonomy is achieved.”

Senator Mulcahy said there were a number of ways in which new business could be secured at Shannon Airport. “Every effort must be made to entice low cost carriers such as Ryanair back to Shannon and to promote the airport as a low cost passenger hub. Furthermore, the customs and border pre-clearance facility should be extended to include U.S.-bound cargo traffic.”

“As the airport can no longer survive alone on air passengers travelling to and from the facility, the development of ancillary operations such as an international cargo hub is key to securing the future viability of Shannon Airport. Furthermore, the removal of the DAA’s influence over the airport will allow for the exploration of the development of a global logistics centre for humanitarian aid in Shannon, a proposal that has been put forward by Clare County Council in the Clare County Development Plan 2011-2017. Developments like this are feasible considering Shannon’s strategic location, the facility’s unrestricted runway, its round-the-clock operation and the availability of a large amount of space around the airport.

“Other possible developments that could be explored by the Airport’s new management structure, once established, are a residential flight school and a centre for space collaboration and research co-operation. Each of these proposals has been suggested in the past but their potential has never been fully investigated due to the overbearing influence of the DAA,” he said.

Senator Mulcahy suggested that the airport be renamed and rebranded once the transition had been completed. “I suggest renaming Shannon Airport as Shannon Brendan O’Regan Airport, in memory of a man whose entrepreneurial spirit was behind the establishment of the Shannon Free Airport Development Company and the world’s first Duty Free Shop at Shannon Airport.”

Meanwhile, Senator Mulcahy said the placing of the landbank around Shannon Airport, currently managed by Shannon Development, under the remit of the new Airport management structure would “contribute immeasurably” to the growth of the Shannon Free Zone.

“The proposal to bring the IDA on board to assist with industry placement in Shannon is a massive step in the right direction. Land must be available for investors to purchase at a much more competitive rate than what it is currently being offered. A reduction in this rate will attract investment from both existing and new clients.

“Furthermore, I believe that a proportion of the existing and future rental income from industrial estates in the Shannon Free Zone should be used for the refurbishment of the various estates and the promotion of the airport,” concluded Senator Mulcahy.

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Autonomy For Shannon Is Now Inevitable

This post is from a press interview with Kehlan Kirwan of FocusSME.

Fine Gael Senator Tony Mulcahy from Shannon said he believes that full autonomy for Shannon Airport is inevitable, after a Government-commissioned report recommended an end to the Dublin Airport Authority’s (DAA) management of the facility.

Senator Mulcahy said the Booz and Company report strengthens the argument put forward by public bodies, regional development agencies, private organisations and politicians in the Mid West Region in relation to an autonomous Shannon Airport and Free Zone.

He said he believed Minister for Transport Leo Varadkar and his Department will issue a decision on Shannon Airport’s future “by mid-April, if not earlier”.

According to Senator Mulcahy: “I spoke with Minister Varadkar today and reiterated my long held belief that Shannon Airport will require full autonomy if it is to prosper in the future. The Booz and Company report clearly backs up this view and I would be confident that once due diligence has been undertaken in relation to the financial implications of such a move that the Minister will issue a decision that will benefit Shannon Airport”.

Shannon Airport has been in a storm of controversy over the past few years as locals and politicians have criticised the DAA’s handling of dwindling passenger numbers at the airport. This could also pave the way for Shannon to separate from the DAA and transform itself by creating a logistics hub for the west of Ireland, a suggestion that has been voiced on numerous occasions.

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Some Welcome Good News for Shannon

Minister for Transport, Tourism and Sport Leo Varadkar has welcomed the signing of a Heads of Agreement between the Shannon Airport Authority and the Lynxs Cargo Group, which proposes building a new cargo facility at the airport.

The Minister said he fully supports the project which has significant economic potential for the Shannon region and for Ireland.

The Heads of Agreement signed by Shannon Airport and Lynxs Cargo, a global airport cargo facility company, proposes the construction of new cargo warehouse facilities at Shannon Airport.

The two parties have been in negotiation on this project since 2009.

Minister Varadkar said: ‘I am very happy that Ray Brimble, CEO of the Lynxs Group, is in Ireland to sign this Heads of Agreement with Shannon Airport Authority. I hope it will lead to a dynamic business partnership to develop and expand the air cargo business through Shannon. This would benefit the airport, the entire mid-west region and the national economy’. “I see great scope for the development of the air cargo business in Shannon. The airport has a significant industrial hinterland, with a large volume of high-value products transported by air. But a very significant proportion of air cargo, around 80%, is currently taken out of Ireland by road in order to flown onwards from airports outside the country. This is something I would particularly like to see addressed by Shannon airport.

“The signing of this Heads of Agreement confirms the continued commitment of both parties to further develop the valuable air cargo market. Shannon’s lengthy runway means it can take very heavy cargo-bearing aircraft, unlike many other airports, giving it a unique capacity to exploit air cargo. “I would like to wish both parties to the venture every success in the future.”

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