Shannon decision

Of all the arguments for the privatisation of Aer Lingus, the most compelling was that it allowed the airline commercial freedom…

Of all the arguments for the privatisation of Aer Lingus, the most compelling was that it allowed the airline commercial freedom and brought a stop to the cycle of political interference that contributed to crisis after crisis at the company over much of the last 20 years.

One of the less palatable consequences of this freedom is the decision to abandon a commercially viable route from Shannon to Heathrow in favour of more lucrative business out of Belfast to Heathrow and elsewhere in Europe.

This move would have been inconceivable under Government ownership and highlights a hidden aspect of State ownership. Hitherto Aer Lingus would not have been forced to do something loss-making, but it could be prevented from taking commercial initiatives if its then owner thought they were not in the national interest.

The clock cannot be turned back. Nor should it be. The Minister for Transport is correct in opting to stay out of what is a commercial decision taken by a company in which the State is a minority investor. It is to be presumed that the closure of the Shannon-Heathrow service was at least discussed by the board of Aer Lingus on which he is represented. Assuming the Government maintains this position, then the various corporate manoeuvres currently being contemplated by Siptu are unlikely to succeed in anything other than embarrassing the Government and wasting the company's time and energy.

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That said, the anger generated in the west is understandable. There will be an economic cost to the region although it is important to maintain perspective. Only time will tell if dire warnings about the potential negative impact on the future viability of existing corporate activities there are anything more than rhetoric.

Of genuine concern is what the decision says about the continuing concentration of economic activity ithe eastern half of the island. In this respect, the move should be seen for what it is: a consequence rather than a cause of a long-standing macroeconomic trend. Addressing the relative economic decline of the west is and must be a legitimate policy objective of the Government. The reality is that it no longer possesses a State airline to further this goal and other mechanisms must be sought.

On a broader basis, Aer Lingus's decision should be welcomed in so far as it helps to further normalise North-South relations, effectively acknowledging that, whatever the constitutional issues, we share the one island. It is instructive that Tuesday's announcement in Belfast was attended by the Rev Ian Paisley and at least four other Northern Ministers.