Nobody is going to be forced out the door in Shannon Airport Authority's (SAA's) proposals to reduce its cost base at the loss-making airport.

That is according to SAA chairman, Pat Shanahan, who said Shannon has incurred operating losses over each of the past three years, while its costs per passengers are € 9 - twice that of Ireland's two other state airports, Dublin and Cork.

Last year, Shannon recorded a loss of € 2.5 million, which would have been much greater but for the estimated € 18 million the airport generated in income from the 158,000 US troops that went through the airport in 2004.

Mr Shanahan stated: "Irrespective of the break-up of the airports through the State Airports Act, Shannon is still making losses. The issue of the cost base needs to be addressed quickly." Mr Shanahan added: "There is an urgent need to reduce payroll and non-payroll costs in the immediate future." However, he added: "Nobody is going to be forced out the door."

The present debt and accumulated losses at Shannon airport are € 77 million and the DAA is to take on the debt and losses to ensure that the airport is debt-free when it becomes an independent legal entity.

Mr Shanahan also pointed out that Shannon passenger numbers had remained static since 2001 in comparison with its peer airports, Dublin and Cork. He said that the airport had to address the traffic issues and the difficulty of increasing passenger numbers; the airport's costs base; and the likely removal of its dual US gateway status.