A new 10-year business plan for Shannon Airport envisages the controversial "Shannon stopover" rule coming to an end within three years, it has emerged.
The board of the Shannon Airport Authority yesterday discussed a draft version of the plan. Despite warnings about the airport's high cost base, the plan is generally upbeat about Shannon's prospects, but warns that certain non-core activities may have to be sold or scaled back.
The business plan envisages a gradual phasing out of the stopover rule which currently means every second transatlantic flight must stop at the airport.
The plan suggests that by 2006 only one-third of transatlantic flights will stop at Shannon and by 2008 the stopover rule will probably be eliminated.
Despite the loss of some transatlantic traffic, the business plan estimates that 4 million passengers will use Shannon annually by 2009 and 5.5 million passengers will use the airport by 2014. It currently caters for over 2.3 million passengers.
The plan suggests more work is needed to make the airport accessible to travellers. It suggests a rail link might be built to Shannon and calls for an upgrade of road links to Galway. It also suggests that a marketing fund be set up to promote the west of Ireland as a destination.
In relation to non-core activities, the report suggests Shannon College of Catering Hotel Management may no longer have a role within Shannon Airport.
It suggests a link-up with NUI Galway may be the best way forward, and examines the future of the Shannon golf course which borders the airport.
The report also considers the future of the re-fuelling business at Shannon, known as Shannon Aviation Fuels Limited. However, it is not known whether this business is part of the non-core assets scheduled to be sold.
The report also addresses the long-running controversy of the catering operation at Shannon and suggests this may have to close. It says a redundancy programme will have to be offered to staff in this area.
It also says staff costs generally remain out of line with equivalent sized airports in Europe.Sources last night said the funds to pay for any redundancy programmes may have to come through a grant from the Dublin Airport Authority, rather than Shannon.
The business plan also emphasises the importance of a new low landing charges regime at the airport. It says such a regime is key to attracting and keeping airlines like Ryanair and Aer Lingus at Shannon.
The report suggests the airport seek to do long-term deals with these airlines, with each agreement running for 10 years.
