The government says 850 jobs are on the way to Shannon in 2 undisclosed companies with the separation of the mid-west airport from the Dublin Airport Authority (DAA).
It will happen on December 31st and a new company 'NewCO' will be formed later next year when it is merged into a reformed Shannon Development.
€100 million of Shannon debt will be written-off for the new structure but passengers using Dublin Airport will pay if off.
It is hoped between 3,000 and 5,000 jobs can be created in a new International Aviation Services Centre.
A report from the Aviation Business Development Task Force which was set up by the Shannon Steering Group also states that the Aviation Services Centre 'is conservatively projected to create and maintain 3,000-3,500 new direct jobs within 5 years, not including construction jobs'.
The new entity will include the extensive landbank of Shannon Development and will be tasked with developing the international aviation centre of excellence.
Ministers confident of move
Transport Minister Leo Varadkar said he is satisfied that Shannon Airport can perform to its full potential without the constraints of remote oversight and DAA control.
"The decision taken today is an historic one and will free the board and management of Shannon airport, together with their employees, to bring a fresh approach to the future development of the airport" he said.
"A key element of that future will be the development of an International Aviation Services Centre (IASC) in and around the airport, building on a range of aviation-related activities already undertaken in Shannon such as aircraft maintenance and leasing" he added.
Legislation will now be drafted to establish a new, publicly-owned commercial Shannon entity comprising the airport and the restructured Shannon Development.
This legislation will also make an appropriate change to the name of the DAA to take account of the new ownership structures.
Jobs Minister Richard Bruton says the announcement is risky but there was no other option.
