US multinationals may relocate from Ireland when the "open skies" policy is introduced in 2008, an Ibec report has found.
The policy will see a reduction of flights in and out of Shannon airport when it comes into effect.
The report, Embracing the Opportunities and Challenges of Open Skies, was published by the employers' group today and contains the results of a survey of 123 companies that employ more than 20,000 in the west and mid-west region.
Twenty five of these either agreed or strongly agreed with the statement that "a substantial reduction in flights from the US to Shannon could trigger decision to relocate the company from Ireland.
"Many of these companies are US multinationals faced with the possibility of limited access by corporate headquarters," according to the report.
More than half of all respondents to the survey, however, agreed that an increase in services from the United States to Shannon would have a positive effect on expansion plans for the company in the west of Ireland.
Almost 70 per cent said they agreed that the current level of access and connectivity from Shannon airport to the United States and Canada is vital for the company's continued competitiveness.