Thursday 10 May 2012

Ireland's Shannon Airport - where does it go from here?


In 1947 the Irish Customs Free Airport Act established Shannon Airport as the world's first duty free facility something which would become a template for other Duty Free facilities worldwide. The sharp rise in the number of transatlantic flights to North America established the airport as the last refueling point between the two land masses but the introduction of long range jet aircraft it soon saw passenger numbers decline.

Ryanair - was a regional hub for the airline?

Being under the control of the government owned Dublin Airport Authority (or Aer Rianta as it was known as then) since 1969 it has always been felt that Shannon Airport was seen as a second class status with it now being Ireland's fifth airport and suffering a 37% decrease in passenger numbers in 2010. Even with the advent of the low cost airlines such as Ryanair the DAA has not been able to cement a steady enough relationship with Ryanair who have taken traffic to other airports in Spain.

However, in a turn around decision this week it has been outlined that Shannon Airport will no longer be under the authority of the DAA - the Government will still own Shannon Airport but the direct control of the airport is being handed over to local management at Shannon Development, the regional development agency.

The Future Options for Shannon Airport

The first priority is to increase passenger numbers now it will be able to compete on a level playing field with the other Irish airports. Also establish niche activities will make it a player in the aviation market - with its long runway and abundance of surrounding land for warehousing, 24 hour flying capability due to its isolated location, US customs clearance (the only one in Europe) it would make a good European hub for cargo. The first development of this kind has already been signed with the US cargo group Lynx building a 19,000 sqm facility for a global airport cargo facility specialising in international logistics services.

The title of the world's first duty free shop will still remain with Shannon as long as they can guarantee their future with growth such as this.

No comments: