AER Lingus has confirmed plans to close its cargo facility at Shannon Airport before the end of the year.
The carrier, part of the International Airlines Group (IAG), has said that a review of its operation in Shannon has been completed and a decision has been made to close the facility.
The airline said that significant capital investment is required at its cargo building in Shannon which would not be supported by its current level of cargo activity.
Aer Lingus has confirmed that IAG Cargo will commence consultation with impacted staff in the coming weeks.
“IAG Cargo has completed a review of its operation at Shannon Airport and has taken a decision to close the facility by the end of 2024. This is because the building requires significant capital investment that is not supported by the level of cargo activity at Shannon Airport. The company will now enter a consultation process with staff representatives to explore the options,” a statement from Aer Lingus said.
Aer Lingus’ cargo volumes at Shannon have declined by half in recent years and, unlike other locations, volumes have not recovered post Covid, making the business model for remaining at this location unsustainable, the airline said.
“Every effort was made in the last few years to secure additional cargo business for the Shannon facility, both locally and by diverting cargo from other areas, but regretfully it was concluded that the cargo operation for Ireland could no longer support a dedicated presence in Shannon, particularly in light of the fact that over 95 per cent of all Shannon cargo travels by road to fly in or out of Dublin,” the airline added.
In 2021, Aer Lingus confirmed plans to close its crew base at Shannon Airport. The airline cited a financial loss of €103million in the first three months of that year for the closure. This was on top of a total loss of €361m in 2020.
In 2012, the airline closed its maintenance base at the mid-west airport.
Commenting on the decision by IAG Cargo to close its Shannon Airport facility, a spokesperson for The Shannon Airport Group said that the group will “be sorry to see the operations cease” after having been in constant operation since 1969.
“Aer Lingus, part of the IAG family, remains a valued and long-standing airline partner of Shannon Airport, and we are committed to continuing our collaborative relationship.”
The spokeswoman added that the airport “has a strong cargo operation, and we will continue to work with our other cargo operators at Shannon Airport among these, DHL, UPS and FedEx”.
While Aer Lingus’ cargo operation at the airport has seen a steep decline, CSO figures show that cargo operations at Shannon Airport have grown 23 per cent since 2018.
Fianna Fáil’s spokesperson on Climate Action, Communication Networks and Transport in the Seanad, Timmy Dooley, said he is very disappointed with the Aer Lingus decision.
“It will have a very significant negative impact on the families affected and on the local economy,” he hit out.
“I would call on Aer Lingus to open discussions with the staff to see if there’s a way to protect the jobs in the first instance and if that can’t be achieved then put in place a decent redundancy package for these people, many who have given their entire career working there.”
