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Dublin authority chief addresses ARI issueDublin authority chief addresses ARI issue
Gavin Lipsith
21-Jun-2006
The recently-formed Dublin Airport Authority believes there is a strong case for it retaining Aer Rianta International rather than ceding it to the struggling Shannon airport
Dublin Airport Authority (DAA) chairman Gary McGann has argued that it should take control of Aer Rianta International (ARI) in the future, according to a report in the Irish Times. Speaking in front of the Irish parliament's joint committee on transport, McGann said that "logic and intuition" suggested that the more profitable airport should own the duty-free and airport management company, as opposed to the struggling Shannon airport.DAA has maintained control of Dublin, Cork and Shannon airports as well as ARI since the process of splitting up former national airport authority Aer Rianta began. McGann said that the company did not have enough reserves to break up the three airports at the moment. When the break up does go ahead, McGann said that DAA should retain ARI given its strong balance sheet.
McGann described Shannon as "not viable with its current cost base", adding that the temporary effect of US military transit traffic was masking "significant underlying losses" at the airport. He also argued that the existing Eu6.14 ($7.75) passenger charge at Dublin was not enough to fund necessary investments, saying that Eu7.50 ($9.50) per passenger was desperately needed to cover developments.
Separation of the airports themselves is proving difficult given the government's aim to make Cork and Shannon debt-free to stimulate growth, said McGann. He revealed that Dublin is being asked to take on the two airports' debt, totalling Eu300m ($378.6m), although it only has reserves of Eu140m ($176.7) itself.
DAA CEO Declan Collier revealed that the company would file planning permission for a second terminal at Dublin in the summer, and that the planned size of the facility had to be revised following new growth forecasts from Aer Lingus and Ryanair.
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(15-Oct-2004) - IRELAND. Aer Rianta was renamed Dublin Airport Authority on October 1, under the terms of the state airports group's break-up
(1-Mar-2004) - IRELAND. Aer Rianta International (ARI), the overseas arm of Irish airports group Aer Rianta, could come under the joint management of separate Dublin and Shannon airport boards under new proposals to break up the group
(1-Aug-2005) - The Irish government has named December as the deadline for a decision on the future of Dublin, Cork and Shannon airports, as well as that of Aer Rianta International (ARI)
(28-Feb-2004) - Aer Rianta International, the overseas arm of Aer Rianta, could come under the joint management of separate Dublin and Shannon airport boards under new proposals to break up the group
(6-Jan-2005) - Decision on future of overseas arm Aer Rianta International will come at the end of April