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 made to close the facility by the end of 2024. It’s understood that around 20 staff are employed at the facility.
The airline has also stated that significant capital investment is required at their cargo building in Shannon however the level of cargo activity at the airport wouldn’t support this.
Aer Lingus has confirmed that IAG Cargo will commence consultation with impacted staff in the coming weeks.
In a statement, Aer Lingus said: “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.
[Aer Lingus’] Cargo volumes at Shannon have declined by half in recent years and unlike other locations, these volumes have not recovered post Covid, making the business model for remaining at this location unsustainable.”
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% of all Shannon cargo travels by road to fly in or out of Dublin,” the airline added.
While Aer Lingus’ cargo operation has seen a steep decline, CSO figures show that cargo operations at Shannon Airport has grown 23% since 2018. Shannon Airport handled 13,600 tonnes of freight in 2018, and 16,752 tonnes in 2023, confirmed that freight volume grew 23% over the last 5 years.
Commenting on the decision by IAG Cargo a spokesperson for The Shannon Airport Group said: “The Shannon Airport Group acknowledges the announcement by IAG Cargo regarding the closure of their cargo facility at Shannon Airport by the end of 2024. The Aer Lingus cargo facility has been in operation at Shannon Airport since 1969 and we will be sorry to see the operation cease.
“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. Aer Lingus continues to operate a range of passenger services from Shannon Airport – daily transatlantic passenger services to New York JFK and Boston; three times daily services to London Heathrow, and a service to Paris Charles de Gaulle airport. We will work closely with Aer Lingus to explore potential opportunities that may arise in the future, ensuring that our airport continues to be a key hub for both passenger and cargo operations.
Shannon 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.”
“We remain dedicated to serving our community and supporting the growth and resilience of our regional economy. Our focus is on maintaining the highest levels of service and connectivity for our customers, and we will continue to seek ways to attract new business and investment to our airport,” The Shannon Airport Group spokesperson added.
In 2021, Aer Lingus confirmed plans to close its crew base at Shannon Airport. The airline cited a financial loss of €103m in the first three months of the 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 midwest airport.
Fianna Fáil’s Spokesperson on Climate Action, Communication Networks & Transport in the Seanad Timmy Dooley has 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. 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,” Senator Dooley said.
Clare Fianna Fail TD Cathal Crowe has also expressed concern at today’s news.
“I’ve been contacted by a number of workers in the Aer Lingus facility in Shannon. They’re devastated to hear from their central management in Aer Lingus that this facility is being earmarked for permanent closure.
“The workers I have spoken to are naturally very worried about their futures and are expected to meet with union representatives in the coming days. This is a major blow for the workers and their families and I will be using my political voice to ensure that Aer Lingus are held fully to account and fulfil all statutory obligations to their employees.
“I hope that redeployment packages will also be offered to workers who wish to remain with Aer Lingus in Shannon.
“Beyond the Aer Lingus cargo workforce in Shannon, this has serious ramifications for the region. Many manufacturing plants in the MidWest depend on the Aer Lingus cargo facility to transit their products globally. They now have to scramble to find alternative solutions and I will be asking Aer Lingus to engage with Shannon Airport management and groups representing industry and commerce in the region to ensure alternative cargo distribution facilities can be available at Shannon Airport.
“Successive governments have sold off state shares in the Aer Lingus company to the point that the State no longer has any shares. Aer Lingus is now centrally managed by the parent AIG company, which is headquartered in Madrid and decisions taken by this company are at all times made on economic grounds rather than the need for regionally balanced development that the Aer Lingus company was once guided by.
“It was a gross mistake for the State to sell of their shares in Aer Lingus and yet again this is coming back to haunt us. I am fully available to engage with the Aer Lingus workers in Shannon in the coming weeks and will do all that I can to ensure that they are not left short changed in this awful process,” Deputy Crowe added.