Directors refusing to leave Aer Rianta board

The Minister for Transport, Mr Brennan, wants to speak to the two Aer Rianta directors who this week rejected his request to …

The Minister for Transport, Mr Brennan, wants to speak to the two Aer Rianta directors who this week rejected his request to stand down from the board of the State airport company.

Mr Liam Meade and Ms Freda Hayes wrote to Mr Brennan indicating that they would implement the Government policy to break up Aer Rianta but did not want to stand down from the company's board at this time.

A fresh attempt on Wednesday by Fianna Fáil and the PDs to broker a compromise with the two directors was unsuccessful, it emerged yesterday. Ms Hayes, who has Fianna Fáil links, is chief executive of Blarney Woollen Mills Group in Cork. Mr Meade, who has PD links, is a vice-president of Shannon Engine Support.

With the two directors continuing to resist leaving the Aer Rianta board, Mr Brennan has postponed the announcement of new independent boards of directors to the airports in Dublin, Cork and Shannon.

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There is also uncertainty about the fate of the Aer Rianta chairman, Mr Noel Hanlon, who has rejected a request from Mr Brennan to stand down but indicated that he too will implement Government policy.

The Minister said late last week that the interim boards would be appointed by this weekend, but an announcement is not now expected until the middle of next week.

He will meet today with the trade unions in Aer Rianta, who are opposed to the break-up.

While there are already two vacancies for non-worker directors on the Aer Rianta board, Mr Brennan wanted to appoint new directors from the three new independent airport boards to the places occupied by Mr Hanlon, Mr Meade and Ms Hayes.

Mr Meade and Ms Hayes rejected the initial offer of a "transfer" to the independent boards at Shannon and Cork respectively.

Sources said it was planned on Wednesday to offer the posts of deputy chairman at the airports to the two respective directors in return for their agreement to stand down from the Aer Rianta board. There was, however, a failure of co-ordination between Fianna Fáil and the PDs.

The offer was rejected by Mr Meade, who was approached by a PD official before a person in Fianna Fáil could contact Ms Hayes.

It is unclear whether Ms Hayes, who is abroad, was approached.

While neither Fianna Fáil nor the PDs were prepared to comment last night, this version of events was confirmed by two informed individuals.

With some sources speculating that Mr Brennan would create additional places on the Aer Rianta board to accommodate appointees to the new boards, Mr Brennan's spokesman would state only that there had been no final decision on the composition of the new boards.

The spokesman said: "The Minister spoke to the Aer Rianta directors last Thursday and outlined the Government decision to them. He is now in the process of compiling the new boards and identifying the most suitable people."

He added: "As part of that process, which is not yet complete, he made the sensible request of asking Liam Meade and Freda Hayes to transfer to the Shannon and Cork boards respectively as those boards will be responsible for the running of the airports in the regions where they are based. As part of that process, he plans to speak with the Aer Rianta directors again over the coming days."

Neither Mr Meade nor Ms Hayes could be contacted yesterday.

Arthur Beesley

Arthur Beesley

Arthur Beesley is Current Affairs Editor of The Irish Times