Pressure on Government over axing of Heathrow route

Attempts to avert the axing of Aer Lingus's Shannon-to-Heathrow service are snow-balling as Opposition TDs accuse the government…

Attempts to avert the axing of Aer Lingus's Shannon-to-Heathrow service are snow-balling as Opposition TDs accuse the government of burying its role in the controversial decision.

Criticism of Aer Lingus plan to axe its Shannon route to Heathrow continued today with Fine Gael questioning how much advance information the Government - a 25 per cent shareholder in the airline - had about the plan.

Regional leaders have warned the Government must intervene, which so far it has refused to do.

The board of Shannon airport has called a special meeting tomorrow morning to discuss the issue. That will be followed by a meeting, involving regional business heads, organised by the Shannon Development Company, which will also be attended by politicians and Siptu, the union representing Aer Lingus staff.

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Employers' group Ibec has said up to 20 major companies in the mid west have warned that the decision by Aer Lingus would have a significant impact on their future viability.

Dromoland Castle is putting a €25 million development plan on hold following the announcement. The castle, which is eight miles from Shannon airport, relies heavily on Aer Lingus's Heathrow link to bring UK and long-haul visitors.

Managing director Mark Nolan said the board of Dromoland Castle, which was given planning permission yesterday for a golf course and staff-accommodation building plans, made the decision to halt the development last night.

"There's going to be huge pressure [to reverse the decision]. I've never seen such cohesive action from the businesses involved." Not just Shannon but most of western Ireland, including Galway, would be affected, he said.

Noel Dowling of Aer Lingus's Employee Share Ownership Trust (Esot) said today the group was not consulted about the move. It is understood Esot plans to discuss a letter sent by Siptu, the union representing Aer Lingus staff, outlining concerns.

Ibec said today that a business-impact assessment into the decision would be released "within a matter of days".

The decision, which will see Aer Lingus moves its Shannon base to Belfast, was "designed to sink without a trace" on the August bank holiday weekend, Fine Gael Transport spokeswoman Olivia Mitchell and Enterprise spokesman Phil Hogan said.

"But the developing crisis and the failure of any Cabinet member to respond has ensured that this issue is still very much in the public eye," they added.

The Fine Gael TDs said it would be remarkable if the Government, as the chief shareholder, did not have information about the plans before Friday, as it claimed.

A Government spokesman said last night: "It is very unfortunate for the mid-west region, but this is a commercial decision for Aer Lingus."

Ryanair said yesterday that it had been "fobbed off" by the Taoiseach's office on foot of its proposal that it and the Government should join forces to try have the Aer Lingus plan reversed.

Ryanair owns 25 per cent of Aer Lingus, and its deputy chief executive, Michael Cawley, said management in any company would have to take notice if shareholders owning more than half of the stock disagreed with a fundamental shift in policy.