The Minister for Public Enterprise, Ms O'Rourke, has said she is coming to the view that the State should retain its ownership of Aer Rianta in the short to medium term. The Minister has also rejected Ryanair's proposal to build a "low-cost" terminal at Dublin Airport.
It is understood that Ms O'Rourke's position on State ownership is consistent with the view that she is likely to recommend the flotation of 25-30 per cent of the airport authority to Cabinet before Christmas, with the State keeping a controlling 70-75 per cent stake.
Speaking to the Oireachtas Committee on Public Enterprise and Transport yesterday, Ms O'Rourke said also that she was not in favour of Ryanair's proposal to develop a "low-cost" terminal at Dublin Airport. The Tanaiste, Ms Harney, has said she favours the proposal.
In a broad-ranging presentation on aviation, Ms O'Rourke said Aer Lingus's funding forum would report to her within six weeks with proposals to meet its requirements for a minimum of £150 million in new equity to purchase aircraft.
While the airline had already stated that it favours an initial public offering (IPO) of stock to raise capital, Ms O'Rourke said the Government would not make a decision until this report was received. However, she said further State funding of the airline had been ruled out, as had a suggestion that the airline take a 10 per cent equity partner.
On Aer Rianta, Ms O'Rourke said she had an "open mind" on the possibility of flotation. "I haven't developed fully my position." However, in response to a suggestion by Mr Trevor Sargent TD (Greens) that would support the retention of State ownership, she said: "I'm coming to that view." Ms O'Rourke repeated her stated position that she was not in favour of replacing Aer Rianta's public monopoly with a private monopoly.
She said she was awaiting completion of a study by London consultants Warburg Dillon Read, which is considering suggestions in Aer Rianta's Future Strategic Direction report that up to 49 per cent of the airport authority be floated. She said the report would not be finalised until consultations with a number of interested parties, including airport trade unions and commercial organisations in Shannon and Cork, were complete.
Ms O'Rourke said she was not in favour of Ryanair's proposals to invest £12 million in a new terminal building at Dublin Airport in return for an agreement by Aer Rianta to charge landing fees of £1 per passenger.
The Government continued to support the Shannon stopover arrangement, said Ms O'Rourke. Challenged by committee member Mr Ivan Yates TD (FG) on the question of "Open Skies", the structure favoured by the EU and US under which the stopover would be discontinued, Ms O'Rourke agreed that there was concern about the matter.
