Sign up to The Irish Times Archive (1859 - 2008)My Account »
The Dublin Airport Authority expects passengers numbers at Dublin, Cork and Shannon airports to decline by 11 per cent this year and has forecast an “earnings shortfall” of €60-70 million as a result of the recession.
The state-owned airport manager said it expects “minimal passenger growth” up to 2011 and expects to posts losses this year and next.
The figures emerged today at the publication of its annual report, which showed that turnover rose by just 1 per cent in 2008 to €631 million while profit, before exceptional items, fell by 28 per cent to €78 million.
The DAA’s chief executive Declan Collier said it was “imperative” that the Commission for Aviation Regulation grant it a substantial increase in passenger charges as the company seeks to pay for a €1.2 billion capital investment in its facilities at Dublin Airport.
The DAA has asked for a minimum €3 rise in passenger charges for 2010 to 2015. Mr Collier said the increase was “fundamental” to the financial future of the company. DAA’s net debt is set to rise to about €1 billion by the end of 2010, compared with ¤188 million at the end of 2007.
The passenger charge currently stands at about €7.50 per passenger and the regulator is expected to make a final determination in October.
In response to the changed economic circumstances, the DAA today said it would shortly begin talks with its staff about achieving savings of €25 million a year. It has halved to €400 million its capital investment plans at Dublin Airport for the 2010 to 2014 period. A second runway and other projects have been shelved.
Mr Collier said a reduction in its workforce was likely as part of its cost reduction programme.
“One of the options we have to look at is a reduction in the number of staff,” he said, adding that 100 workers had left since the start of 2008. He said the job cuts would apply “right the way across the company”. DAA employs around 3,200 staff.
Dublin Airport handled a record 23.5 million passengers last year, a rise of 0.8 per cent on 2007. Mr Collier said this is expected to decline to 21 million in 2009 due to a fall in consumer demand and capacity cutbacks by airlines.
He said Cork and Shannon were likely to experience declines of about 500,000 passengers each in their traffic. Cork handled 3.3 million passengers last year, an increase of 2.5 per cent, but Shannon’s fell by 12 per cent to 3.2 million, due in part to the ending of the compulsory stopover for flights to the United States.
The three airports handled 29.9 million passengers last year, a decline of 0.6 per cent on 2007.
