Cork airport debt 'reasonable'

It is "reasonable" for Cork airport to accept responsibility for some of its €220 million debt according to the Minister for …

It is "reasonable" for Cork airport to accept responsibility for some of its €220 million debt according to the Minister for Transport Martin Cullen.

The Minister said that for Cork airport to move ahead they have "to take on board a portion of the debt that exists on the airport - which is much less than 50 per cent."

"I think its reasonable given the asset base that Cork Airport has that a portion of the debt of around €100 million will be taken on by Cork airport," he added.

It emerged earlier that the Cork Airport Authority is to write to the Taoiseach to convey its opposition to the proposal that Cork airport would assume €100 million of the €220 million debt on its new terminal and other facilities.

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Authority chairman Joe Gantly undertook to write to Mr Ahern after the majority of the 12-strong board strongly opposed the debt proposal during a lengthy debate.

Cork airport has a debt of €220 million on DAA's books, with some €90 million of this being incurred directly on the new terminal, a further €90 million on other new developments at the airport and the remaining €40 million being a long-standing debt.

The Green's Dan Boyle described the decision "as a millstone around the neck of the Cork Airport Authority".

"The Airport will become less competitive and the capacity to earn profits to repay this debt will be diminished. It is a vicious cycle that the Government is asking the newly independent Cork Airport Authority to embark its new life on," he added.