Anger in Shannon, joy in Stormont

AER Lingus last night defended its controversial decision to move its Heathrow route from Shannon Airport to Belfast as part of an overall strategy to develop the Northern airport as a European hub.

Chief Executive Dermot Mannion said the decision to transfer the London route represented a "bittersweet day" for the company but was the right decision.

Up to 50 jobs are believed to be at risk as a direct result of the surprise announcement, which raised concerns about the future of the national airline at Shannon.

Yesterday morning, Mr Mannion was jeered and heckled as he told staff of the decision to move the Heathrow service to Belfast.

A few hours later, after landing at Belfast International Airport, he was greeted with cheers of jubilation as he unveiled the airline's €150m investment plan for the airport.

The new base, Aer Lingus's first outside the Republic, will lead to the creation of 100 jobs in the region and gives the company the potential to cater for up to one million passengers a year.

But business groups and politicians in the mid-west yesterday described the Aer Lingus pull-out as as a body blow to the region.

Undermine

The business group IBEC said the Aer Lingus decision would seriously undermine the capacity of the region to maintain current commercial activity.

IBEC's Pat Delaney said many companies had made substantial investments due to the availability of a Heathrow connection to Europe and beyond.

"This decision is a massive blow to those companies and ultimately to the region," said Mr Delaney.

The American Chamber of Commerce called for urgent meetings with the Ministers for Transport and Enterprise, Trade and Employment and demanded urgent action be taken to secure continued direct air access between Shannon and Heathrow.

"The Government is totally underestimating the impact of today's announcement," said Chamber spokesman Bill Doherty.

Without the direct air link, the ability of some 129 US companies, employing 23,000 people, to conduct global marketplace was "seriously undermined", he said.

The Irish Tourist Industry Confederation said no time must be lost in finding a replacement carrier to service Heathrow or some other major European hub as "even a temporary loss would be damaging".

The Irish Hotels Federation (IHF) called on the Government, as the largest shareholder in Aer Lingus, to ensure that the Heathrow slots remain available in the region.

Michael Vaughan, IHF Shannon Branch chairman, said losing the London route would have "grave implications for tourism and business in the region".

Shannon Development Chairman John Brassil said he was astounded by the decision.

"This route provided a critical air service for the whole West of Ireland. It carries almost 350,000 passengers each year," he said.

Minister of State and Clare TD Tony Killeen also said the Aer Lingus move was hard to understand; while Fine Gael TD Pat Breen accused the Government of washing its hands of Shannon Airport. He said the Aer Lingus pull-out would have an impact on companies from Co Kerry to Co Mayo as well as damaging the region's ability to attract new industry.

MEPs Marian Harkin and Sean O Neachtain and Deputy Michael Lowry were among the politicians who condemned the move.

Union leaders warned that the withdrawal from Shannon would have serious consequences for employment and industry in the West.

SIPTU general president Jack O'Connor stressed that easy access to global transport infrastructure was critical to attracting investment to peripheral regions, while IMPACT said the move by Aer Lingus had created huge uncertainty as to the future of Shannon Airport itself.

On December 10, Aer Lingus will base three aircraft at Belfast, with 56 outward flights per week serving eight destinations in seven countries by March next year. Its flight service between Shannon and Heathrow will cease on January 13, 2008.

The airline will continue its transatlantic operations to New York, Boston and Chicago.

Mr Mannion said "as difficult a decision as it was, the strength of the business case dictated that we were left with no choice".

'This route provided a critical air service for the whole West of Ireland. It carries almost 350,000 passengers each year'

However, Pat Shanahan, executive chairman at Shannon Airport, said the route was one of the airport's most successful and profitable.

"We are concerned with the withdrawal of this route which has performed extremely well over many decades," he said.

He said the Airport Authority would make every effort to replace the business as quickly as possible.