Cork Airport debt issue settled, 19/02/07:

An ultimate resolution to the debt issue in Cork Airport has, it seems, finally been agreed upon.
The Airport had been straddled with a €220 million debt after Martin Cullen, the minister for transport went back on Minister Séamus Brennan's commitment in 2003 that the Cork Airport Authority (CAA) would start off debt free and all debt would be absorbed into the Dublin Airport Authority (DAA).
The issue of who would pay the cost of Cork's new Terminal, Multi-storey car park and improved road network had been dragging on for over a year.

But, it seems with elections looming, the government has ordered the Dublin Airport Authority to pay €120 million of the debt, leaving the CAA to clear the remaining €100 million. The airport has begun redesigning its business plan to eradicate this debt.

This is still not a satisfactory resolution in the eyes of many after Séamus Brennan's original pledge for a debt free Cork Airport Authority, and it is perceived that the move is designed to soften the blow coming up to the elections. C-S

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On Tuesday August 1st 2006 the new Cork Airport terminal opened its doors for business. The new terminal built with a capacity of 3million passengers per year represents a new era for Cork Airport. On the 1st of August it partially opened handling all arrivals only, with departures following two weeks later on August 15th when the 32desk check-in area got its first test. Subway, The Red Bar, Hughes and Hughes bookshop and Londis opened on the 1st, and the Food Market opened for departures on the 15th, along with the Lir Café in the departures lounge. Starbucks café are due to open for business shortly. Since the 15th of August the sole air bridge became operational with airlines like Aer Lingus and CSA utilising them.

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The New Cork Airport terminal which was due for completion by the end of 2005, and then May 10th has been pushed back to "early June" announced the Cork Airport Authority. The CAA claims that delays in the final stages of construction for the terminal have forced them to delay its opening. The earliest that the building will be ready for system testing and employee training/induction is May 8th, and consequently the terminal will not be open to passengers until early June, according to the CAA's latest statement.

It has recently emerged that the Dublin Airport Authority (DAA) are not to foot all the bill for the construction of the new terminal. It had previously been agreed by the Government, and given in a commitment by Séamus Brennan in 2003 that the DAA would pay the €160million cost, leaving Cork Airport and the Cork Airport Authority (CAA) debt free. When Senator John Minihan brought the issue up in the Seanad at the start of February the Dept. of Transport indicated that the DAA are now only to pay €80million of the cost, leaving the CAA to pay the other €80million debt.

This was all but confirmed by Minister Cullen in early March, who is claiming that it is unfair for Dublin to have to absorb the debt of Cork, even though in the original agreement Dublin got the Great Southern Hotel Group cash cow as well as Duty-Free's around the world (on the disbandment of Aer Rianta) in return for footing the Cork debt.

The tension heightened still further recently as Ryanair decided to discontinue part of it's Cork - Liverpool service due to "outrageous" airport charges. Ryanair are blaming the Government as they are forcing the price hikes, and it is feared the prices will rise further with the €80million debt Cork is facing. Ryanair plans to switch the three flights weekly it is axing to Kerry, where pricing is more competitive. The switch will take place as of June 6th. Cork is now reaching the stage where it cannot compete with other European airports of a similar size, and is becoming unattractive for airlines. Both Ryanair and EasyJet are threatening to pull out of Cork if the prices rise further. This move would be disastrous for both Cork and the local economy with the loss of tens of thousands of tourists. The government is being accused of abandoning Cork Airport even by the Fianna Fáil politicians on the Cork Airport Authority.

Only one air bridge is now to be commissioned for use, although four have been installed.

The catering contract has been awarded to the Italian Autogrill. The existing caterers in the terminal will not be continuing to  supply the airport.

The multi-storey car-park was completed by Rhocon in the latter half of 2005 and is operative.

A number of problems with the new terminal have recently been highlighted by Councellor Tom O'Driscoll (Fianna Fáil). Below is a letter he wrote to the Irish Examiner.

For years Aer Rianta and, more recently, Cork Airport Authority have been appeasing dissatisfied airlines, passengers and the general public by pointing to the new terminal that is finally due to open in April.

The terminal was designed to cater for three million passengers per year. Early indications are that the airport will easily exceed that figure this year.

While the new building is visually attractive, many questions are being asked about its use.

This is primarily due to the fact that a number of subtle but significant changes have been made to its design before and during the construction phase.

These include:

1. A major reduction in the floor space on all three floors of the new building.

2. The reduction of the number of aibridges from six to one. Cork will now have the distinction of being the only airport in Europe that has only one airbridge.

3. The scrapping of the proposed link between the old and the new terminals.

4. The abandonment of plans to provide covered walkways to aircraft parked in remote stands ensuring that passengers will continue to get soaked to the skin during inclement weather.

There are many other less obvious changes that will become apparent when the terminal is operational.

Plans for further urgently needed infrastructural improvements have been put on hold indefinitely.

The decision to put the airport under the effective control of the Dublin Airport Authority is the cause of many of these difficulties.

It is time for Transport Minister Martin Cullen to intervene to ensure that Cork airport is allowed to reach its full potential in the years ahead.

Cllr Tom O’Driscoll
Cork City Council
City Hall
Cork