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.
The airline also stated that significant capital investment is required at its cargo building in Shannon, but added that the level of cargo activity at the airport would not support this.
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," Aer Lingus said in a statement.
"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," it added.
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, confirming that freight volume grew 23% over the last five years.
Commenting on the decision by IAG Cargo, a spokesperson for The Shannon Airport Group said it 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," the spokesperson said.
"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," they said.
"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," the spokesperson said.
"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 spokesperson added.
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.
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 mid-west airport in Co Clare.
SIPTU said its members working in Aer Lingus (IAG) Cargo in Shannon Airport were left "shocked and saddened" by the sudden announcement that the cargo operation is set to close.
SIPTU Aviation Sector Organiser Niall Phillips said the union has been in contact with Aer Lingus management and a meeting is scheduled for Thursday, 15 August to discuss the closure and the implications it will have for the 18 SIPTU members employed by Aer Lingus in their Shannon cargo operation.
"At the meeting we will be prioritising redeployment over redundancies," Mr Phillips said.
"Under the Protection of Employment Act employers proposing a collective redundancy must engage in an information and consultation process with employees' representatives for at least 30 days prior to issuing any notices of redundancy. SIPTU will be working diligently to ensure that the rights of our members are protected throughout this process," he added.
