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News : Irish Last Updated: Dec 19th, 2007 - 13:17:15


American Chamber of Commerce in Ireland, IBEC and Shannon Development call for urgent action to ensure that Aer Lingus maintains Shannon-London Heathrow link
By Finfacts Team
Aug 7, 2007, 15:45

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Check-in at Shannon Airport, County Clare

The American Chamber of Commerce in Ireland has called for urgent action to be taken to secure continued direct air access between Shannon and London Heathrow Airport and is seeking urgent meetings with both the Minister for Transport and the Minister for Enterprise, Trade & Employment.

Meanwhile, Shannon Development Chairman, John Brassil has called for an immediate review of the decision by Aer Lingus to terminate its profitable Shannon to Heathrow air service. “This decision will be a major body blow for the Shannon Region’s tourism and business communities, and given the strong Government commitment to the route just last year, I cannot understand why this decision has been taken. I am calling for an immediate review of the matter,” said Brassil.

In another strong statement, IBEC Director of Regions Pat Delaney said that the Aer Lingus decision will have a devastating effect on the Mid West region and could seriously undermine the capacity of the region to maintain current commercial activity.

In a joint statement today, the American Chamber of Commerce’s Mid-west and West region chairpersons said that the decision by Aer Lingus to withdraw the service was a ‘serious body blow’ to the entire region and would damage the economic development of both the West and Mid-west.

“The Government is totally under estimating the impact of today’s announcement by Aer Lingus. Heathrow is the largest hub in Western Europe providing access to all major European cities as well as key destinations in the Middle and Far East,  Without this direct link the ability of companies to conduct their business in the global marketplace is seriously undermined”, Bill Doherty and Gerard Kilcommins said today.

“This will impact not only on direct jobs in Shannon Airport, it has the potential to result in job losses throughout the Mid-west and West of Ireland as companies re-evaluate their investment decisions in the region”, said Bill Doherty, Chair of the American Chamber Mid-west Region.   Currently there are some 129 US companies providing employment to over 23,000 people in the Mid West and West regions of Ireland, with  a further 57,500 indirect jobs being supported by US companies. No one should under-estimate the impact of this decision”. 

Gerard P. Kilcommins, Chair of the American Chamber West Region said; “This decision flies in the face of the government’s stated desire to create a vibrant economic Atlantic corridor along the western seaboard and their commitment to balanced regional development. This is not scaremongering -  there is real and justifiable concern among our members who are now without swift and direct access to their main markets.  The American Chamber has consistently stated that accessibility to international markets is vital to Ireland’s future competitiveness.  No one should be in any doubt that this is a very serious threat to continued and future investment in the Mid-West and West regions”.

Bill Doherty and Gerard Kilcommins are requesting meetings with Minister Noel Dempsey, Minister for Transport and Minister Martin to impress on the government the need for an urgent review of today’s decision by Aer Lingus.  “It makes no sense that Aer Lingus would direct further traffic through Dublin Airport.  The service was being used by companies in the region and we need to secure daily flights to London Heathrow without delay”. 

Shannon Development Chairman, John Brassil said: “Given the critical nature of the links, we are astounded that Aer Lingus has taken this decision to withdraw from Shannon and move to Belfast. The switching of the Shannon Heathrow slots constitutes a fundamental breach of trust by Aer Lingus in respect of Shannon and the West of Ireland. As the tourism authority for the Shannon Development Region and with an industrial client base around the Shannon Region we are extremely disappointed with this decision.”

John Brassil continued: “This route provided a critical air service for the whole West of Ireland. It carries almost 350,000 passengers each year and is a profitable air route with strong load factors. The Heathrow service is essential for the establishment and maintenance of Foreign Direct Investment (FDI) and as well as new indigenous industries across the West of Ireland who depend on this service.” 

“Access is a major factor for our client companies decision to base themselves in the Region. For instance in the Shannon Free Zone which employs over 7,000 people, and generates exports of over €2.5 billion annually, connectivity with the Heathrow hub is essential as it allows them to do business with UK, Europe and worldwide destinations. Another major consideration is that it also allows their customers ease of access to the Shannon Region,” Brassil concluded.

IBEC's Pat Delaney said: "This decision has been taken without any consideration of the impact on the Mid-West region. There has been no consultation, no business impact assessment and no regard for the future of business in the region.

"Many companies in the Mid West have made substantial investments due to the availability of a Heathrow connection to Europe and beyond. No other UK airport fills that need. Despite the fact that the Shannon-Heathrow route is highly profitable, those companies now find that their investment has been jeopardised as Aer Lingus seeks to develop its business in Northern Ireland. Many companies based in the region trade internationally and use the Heathrow link for product distribution and personnel. This decision is a massive blow to those companies and ultimately to the region.

"The fallout from this decision will have a marked effect on the ability of the Mid West region to maintain current investment and job levels. Its timing, lack of consultation and its management show all the hallmarks of a decision that was taken some time ago and kept a closely guarded secret.

On the same day that the Mid West region loses a vital piece of transport infrastructure, a decision by Aer Lingus to move investment to another location is met with political fanfare. Is it any wonder that the region feels let down and betrayed by the process?

"There is a direct relationship between access to air routes and the long-term viability and growth prospects of the business community that those routes service. As a major shareholder, the Government led by the Taoiseach must recognise its responsibility to the Mid West region and delay this decision until a full business impact assessment is carried out."


© Copyright 2007 by Finfacts.com

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