A new 10-year business plan from Aer Rianta suggests that 281 redundancies may be needed at Shannon Airport, irrespective of the break-up plan favoured by the Minister for Transport, Mr Seamus Brennan.
The 10-year plan due to be submitted to the Government this week points out that Shannon has a higher staff to passenger ratio than Dublin or Cork. The plan suggests cuts may be needed at the company's Shannon catering operation and among certain clerical grades.
The report accepts any redundancies will have to be voluntary and it suggests this could cost anything between €20 million and €25 million. It points out that the ending of the Shannon stopover could make the position worse.
The catering operation is believed to be a significant loss maker for Aer Rianta and the company has been looking for a joint venture partner for some time. The catering section provides in-flight meals, plus food services inside the terminal at Shannon.
A spokesman for Aer Rianta last night issued a short statement: "Aer Rianta is not in a position - at this time - to discuss details of recent business plans produced for various business units".
The disclosure comes as the Mr Brennan prepares to publish his Bill breaking up the State-owned airports company.
According to sources this will lead to the dissolution of the Aer Rianta board, currently chaired by Mr Noel Hanlon. This is likely to meet resistance, possibly from Mr Hanlon and certainly from some directors.
Mr Peter Dunne, a worker director on the board, said yesterday he was exploring various legal options.
He said his duty as a director was to act in the best interests of Aer Rianta and the break-up was not in the best interests of the company.
"The only benefit of all this is for vested interests like Mr Michael O'Leary. What people should be asking themselves is what benefit is the taxpayer going to get from all of this," he said.
The legislation is expected to be circulated among opposition deputies today and will be read closely by the Aer Rianta board and the wider trade union movement.
There remains deep division over what was agreed last week at the national pay talks.
The Department of Transport insists the legislation will clear the way for all three designate boards to take over as soon as the bill is signed into law. However, several Aer Rianta board members and some unions sources believe this should not happen until April 2005.
There is also some confusion over the future of senior Aer Rianta figures such as chief executive Ms Margaret Sweeney. At the time of her appointment late last year, Ms Sweeney was described by the Department of Transport as an "acting" chief executive.
It is not clear whether she will continue when the Dublin Airport authority takes over under the chairmanship of Smurfit executive Mr Gary McGann.
