The Government has this week signed off on a Bill to set up the new Shannon Group commercial State PLC company on a statutory basis. Ireland South European Candidate Deirdre Clune welcomed Government approval to publish the Bill and said it’s an important development for the mid-west region,
“The State Airports (Shannon Group) Bill 2014 will give effect to the Government’s decision to set up a new commercial State company in Shannon comprising Shannon Airport Authority and a restructured Shannon Development. It is my understanding that the bill is to be published in a few days. This is good news for Shannon airport and the Clare region”
“A recent survey by Failte Ireland has found that 79% of North American visitors to Ireland would endorse Ireland as a holiday destination. The survey found that they regarded Ireland as value for money and that the people, scenery and culture remain Irish tourism's strongest assets. A strong and independent Shannon airport is perfectly placed to take advantage of increased tourism from North America. An independent Shannon airport will also allow the airport to compete to attract new routes which will help bring investment to Clare.
“Shannon's non-commercial functions in relation to industrial and tourism promotion and regional development have already been transferred to the relevant national agencies and it will transition to a fully commercial subsidiary of Shannon Group concentrating on realising value from its extensive property portfolio.”
“The Bill will make the new Shannon Group PLC the parent company of both Shannon Airport Authority (SAA) and Shannon Development. The State will no longer have direct ownership of those two companies. As wholly-owned subsidiaries of Shannon Group, SAA and Shannon Development will maintain their separate legal identities”
“I have called on the Minister again today to enact the legislation before the summer recess. The priority will then be to formally establish the new Shannon Group company, appoint its board, transfer ownership of SAA and Shannon Development, and carry out all legal and administrative procedures to ensure that the new company structure is ‘bedded-down’ as soon as possible”
“If Ireland is to maintain its position as one of the top global centres for aircraft leasing, we must ensure that we do not fall behind the growing number of countries that have adopted this special insolvency regime for aircraft assets, including this 60-day waiting period which is similar to that under the US Bankruptcy Code. Essentially, what this will mean is that unless a default is otherwise remedied, a creditor will automatically acquire the right to repossess the aircraft asset after a period of 60 days. This will assist Irish airlines and the aviation leasing community in gaining access to more cost effective and wider sources of capital internationally and will also facilitate the issuance of aviation debt in Ireland”