Take-off for Shannon Airport from new playing field

2^nd September 2014

In recent weeks President Higgins signed the Shannon Group Bill into law. For many this is an incidental occurrence, but Limerick Chamber Economist Órlaith Borthwick outlines why this was such an important step for businesses in the region and why Limerick Chamber has placed such an emphasis on Shannon Airport over the past number of years.

“The signing of the Shannon Group Bill into law last week was an historic moment and the result of a long standing campaign by Limerick Chamber. We have lobbied for Shannon Airport to be separated from the DAA group since 1996, recognising the critical role the airport plays in supporting business, jobs and economic prosperity for our region. In tandem with the signing of the Shannon Group Bill, the Department of Transport, Tourism and Sport concluded their consultation on a National Aviation Policy for Ireland. The proposals in this consultation document, in conjunction with the Bill will underpin Shannons importance as a strategic national infrastructural asset. It will remain in government ownership but will have the freedom to make decisions free from the Dublin-centric DAA governance model.”

Limerick Chamber has always maintained that good connectivity is a pre-requisite for business investment. The wider economic benefits of air transport are included in all policy and investment appraisals. Access to global air transport networks widens available markets resulting in higher revenues and potential returns from investment. It facilitates efficiency improvements allowing access to a wider base of suppliers and production techniques and it fosters greater competitiveness, allowing increase in both inward and outward investment as well as empowering the ability to explore economies of scale. The Chamber maintains there is a clear and positive correlation between the World Economic Forum Global Competitiveness index and a country’s connectivity. As a region on the periphery of Europe, daily connectivity to European and transatlantic hubs from Shannon is an invaluable unique selling point of differentiation for Limerick as a location in which to locate and do business.

According to Dr. Borthwick, “The environment within which the airport operates influences its ability to diversify, expand and support the economic well-being of our region. The signing of this bill will allow the Shannon Group to drive and deliver growth at Shannon Airport, further enhancing the services and supports they make available for the wider business community. Separation has already had a positive impact in a relatively short space of time; we have seen continued increases in passenger numbers and routes. While this growth supports the tourism & hospitality sector and underpins the attractiveness of the region as a place to do business, strategic investments and partnerships are being formed to enhance the commercial landscape of the region; from the recent ASL announcement to the opportunities presented by the establishment of the International Aviation Services Centre. Cumulatively, these developments strengthen enterprise opportunities for the entire region.”

So what next for Shannon Airport? Limerick Chamber is confident in the ability of the management team to drive and enhance further growth and opportunities, not just for the group but also for the region. However, more needs to be done at a national level to further realise the economic potential generated by the airport; from the granting of fifth freedom rights to the expansion of customs and border clearance to cargo.

“Limerick Chamber is a business members’ organisation, whose remit is to influence decisions which will support our members. We play an instrumental role in promoting Limerick and the wider region as a key place in which to invest and do business.  We believe what has been delivered in the recent Shannon Group Bill and what is being proposed by the National Aviation Policy will assist our members, the businesses of the Mid-West, to expand and grow and help drive greater profitability.  We welcome the adoption of our recommendations by government in this instance and thank our members who have assisted and informed our agenda on this topic over the last number of years” concluded Dr. Borthwick

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For more information contact Órlaith Borthwick, Limerick Chamber Economist

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