[Article] Airports need €1.2bn capital spend - report

Victor

http://home.eircom.net/content/irelandcom/topstories/3394183?view=Eircomnet

Airports need €1.2bn capital spend - report
From:ireland.com
Tuesday, 15th June, 2004

A 10-year business plan prepared for the board of Aer Rianta has suggested that capital expenditure of more than €1.2 billion will be needed to upgrade all three airports.

The latest forecasts come as the Minister for Transport, Mr Brennan, seeks to get his Aer Rianta break-up plan approved by the Cabinet today. Unions have warned that industrial action could follow any decision.

This morning Mr Brennan is expected to have some informal contact with the Minister for Finance, Mr McCreevy, on the issue. However it is possible a decision on the controversial plan may be deferred for another week. Mr McCreevy is believed to have some financial concerns which Mr Brennan is trying to address.

Meanwhile, at a sometimes tense board meeting, the directors of Aer Rianta heard presentations on the decade ahead for the airports company.

During the presentation it emerged that Shannon will need €75 million, Cork will need €200 million and Dublin will need €1 billion in capital expenditure.

The figures were prepared by senior divisional managers, with support from IBI Corporate Finance. The board also heard that airport charges will need to increase significantly beyond the current cap imposed by the airport regulator, Mr Bill Prasifka.

The meeting heard that more than €1.2 billion will be needed irrespective of what structure is in place for the airports. A significant amount of the money will be needed to upgrade terminals, aprons and runways at the three airports. Plans by Boeing and especially Airbus to introduce larger aircraft will impose extra costs on airports like Dublin. The board will resume its meeting on Thursday.

According to sources, some directors queried the presence at the meeting of the chairmen designate of Cork and Shannon airports, Mr Joe Gantly and Mr Pat Shanahan. They were appointed by the Minister for Transport, Mr Brennan.

Some Aer Rianta directors expressed concern that Mr Shanahan and Mr Gantly could soon be heading up competing airports and giving them access to confidential Aer Rianta figures might give them an advantage in future. However these concerns were strongly rejected by Mr Shanahan and Mr Gantly, explained sources.

It is understood neither Mr Gantly or Mr Shanahan will be attending Thursday's meeting due to other commitments.

Meanwhile, the civil aviation branch at Dublin Airport called on the Taoiseach, Mr Ahern, to ensure unions are consulted before any legislation on Aer Rianta is finalised.

The branch said this urgent call was being made ahead of today's Cabinet meeting. "The Taoiseach should be reminded that absolutely no negotiations as promised have taken place for over six months in relation to this matter," said a statement.

It said if the Taoiseach did not provide such a commitment action might follow. "Regretably airport workers have indicated that an adversarial industrial reaction will be inevitable," said the statement.

thejollyrodger

During the presentation it emerged that Shannon will need €75 million, Cork will need €200 million and Dublin will need €1 billion in capital expenditure.

:eek: :eek: thats a serious amount of cash .. where are they going to get it all from ?

Victor

They can borrow it and pay it off over 10-30 years. The economic case is less justified with Cork and Shannon.

thejollyrodger

they should go ahead and upgrade the facilities in Dublin Shannon and Cork. I include the last 2 because isnt shannon going for the freight hub of Europe ?? And Cork is the second airport. Even the likes of Belfast International Airport is pushing for daily trans altantic route.

Even the like of portugal have better infastructure than us. Its a discrace