Minister for Transport, Seamus Brennan today launched the Irish Aviation Authority's (IAA) new €83m Shannon Air Traffic Management (ATM) system.
Shannon Air Traffic Controllers are now using the new system to manage the huge fleet of over 1,200 large jet aircraft, which daily fly through Irish airspace.
This adds up to carrying in the region of 50 million passengers.
The new system expands the capacity of the Irish Air Traffic Control (ATC) system and enables Irish controllers to handle expected higher traffic volumes.
From 2006, Shannon controllers will handle 90% of all traffic between Europe and North America.
The new ATM system, known as CAIRDE 2000, is part of the IAA's €115m national programme to provide Ireland's airspace with one of the most advanced computerised radar and flight planning management systems in Europe.
Minister Brennan said: "CAIRDE 2000 will play a pivotal role in securing the IAA's future in the new aviation environment of the Single European Sky."
The Single European Sky is an EU initiative aimed to reform the outdated European air traffic control system and safely expand its capacity to manage increased traffic volumes.
The IAA employs almost 350 people in the Shannon region. These include air traffic controllers, radio officers, engineers and the necessary administration staff.
Airlines pay the IAA for air traffic control and communications services and this accounts for over 80% of the IAA's revenue.