Routes and Airports Channel

Dublin Airport Authority braces for economic downturn

By Sandra Arnoult
ATW's Airports Today, May, 2009, p.2

Following a sharp decline in profit in 2008, Dublin Airport Authority will scale back some of its plans for a renovation and airport improvement projects in the face of an anticipated 11% drop in passenger numbers at its three airports this year.

For the year ended Dec. 31, 2008, DAA group, which represents Dublin, Cork and Shannon airports, reported a profit of €78 million, a fall of 28% from a year earlier. Passenger boardings dipped 0.6% to 29.9 million.

"The company is facing a very difficult financial situation," Chief Executive Declan Collier said. "This is the deepest recession since the 1930s and it is having a huge impact on the aviation sector." DAA is reviewing all aspects of it business with a focus on capital development and operating costs.

A number of proposed projects, such as addition of a second runway at Dublin and additional aircraft parking, will be deferred until circumstances change. The scaled-back investment program will focus on maintaining the minimum spending necessary to keep the airport functioning safely and efficiently, according to DAA.

The current €1.3 billion Transforming Dublin Airport capital program will be complete within the next 18 months. A new passenger terminal, central to the project, is expected to be finished by February 2010 for major tenant Aer Lingus.

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