CONSULTING GROUP Booz has recommended to the Government that Shannon airport be separated from the Dublin Airport Authority and placed into a separate corporate structure with a remit to expand its activities beyond passenger travel.

However, Booz also concluded that that debts associated with Cork airport meant that it should remain with the DAA for the immediate future, although with greater autonomy.

The Irish Timeshas also learned that Booz has ruled out the possibility of privatising either airport.

Informed sources said that Booz suggested to the Government that Shannon be separated from the DAA and given a new ownership structure.

This could be a public holding company involving local stakeholders – possibly Shannon Development, local authorities and other relevant commercial and public bodies.

The consultants cited Shannon airport’s cost base as being high and suggested that a private-sector concession to run the facility might be considered.

Such an arrangement operates in Luton airport in London and at 26 airports in Canada.

In addition, Booz suggested that Shannon’s activities be widened to include more cargo, private aircraft and a greater use of its land for other aeronautical business.

In terms of Cork, Booz found that its €200 million debts relating to the building of a new terminal meant it was not viable to spin it off from the DAA.

Booz concluded that Cork could not sustain such a debt level while it would be unfair to ask the DAA to assume the debt.

However, Booz found that Cork was profitable at an operating level and could be viable as a standalone entity in the future.

Booz recommended that Cork’s governance procedures be reviewed to allow for greater autonomy.

The Booz report was commissioned recently by Minister for Transport Leo Varadkar to help him determine if Shannon and Cork should be separated from the DAA.

Mr Varadkar is expected to make a recommendation to the Cabinet on the future structure of the three airports early in the new year.