AER LINGUS will abandon its Shannon-Heathrow service in favour of Belfast-Heathrow based on better returns for shareholders. 1 The losers--businesses based in the Shannon region--must look for alternative air links to Heathrow. Easy access will be difficult. What's easiest is for the Irish government to buy two or three Heathrow slots from Aer Lingus or the grey market and then offer them at reduced rates to any carrier willing to operate a Shannon-Heathrow direct service. It's very straightforward and would cost less than constructing a light rail connection from Dublin city centre to Dublin Airport.
Aer Lingus has a lot of slots for Heathrow operations. Pre-issue valuations gave the slots valuations for around EUR 10m each. Perhaps the Irish government values Shannon region employment at worth EUR 30m over the next decade. If so, all that's needed is to launch an eBay bid for the Heathrow slots. Anyone with EUR 10m to bid will get at least one slot for perpetual use. Long haul operators covet the slots. Qantas paid close to £20 million for two pairs of slots in late 2003 and Virgin Atlantic paid £20 million for four slot pairs. Previously the market valued prime slot pairs at £5 million to £6 million. The Irish government, not known for striking a tough bargain, could find it relatively easy to get a few slots for less than it paid for the failed e-voting fiasco. As a taxpayer, I would cap my budget at EUR 56m and return to the public with five slots in my pocket. My fee would be no more than 10% of the total transaction. Interested government officials can contact me directly through Jaiku or through the email link in the right hand gutter of my blog.
1. Michael O'Regan -- "Minister Rules Out Action on Aer Lingus Proposal" in HomeNews, The Irish Times, 7 August 2007.
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