Cork Airport

Balmed Out

Whats the story? The gov promised the Dublin airport authority (which was given control of most assets eg. Great southern hotels) would be paying but it doesnt look like thats going to happen. Is it true that at the moment Dublin Airport Authority are still running Cork airport even though in the near future they will be competitors - sounds a bit iffy.

ishmael whale

Your perception of the situation is a bit off-beam. The revenue generated in Dublin Airport is essentially what’s been keeping the group going, including Great Southern Hotels. You may have missed some of the recent coverage of Great Southern Hotels trading position, and the political background to the issue. Hopefully the few news items below will help.

Given the dependence of the group on Dublin Airport revenues, the intention was to take a phased approach to establishing independent companies in Shannon and Cork. The first step was to establish boards in both Shannon and Cork to come up with business plans that made them viable stand-alone entities. Dublin would continue to hold the debts and assets of the whole group until viable business plans were in place. The problem now is if Dublin signs over Cork Airport’s assets to its board without transferring a portion of the debt, Dublin Airport’s balance sheet will be unsound.

In plain terms, the Dublin Airport Authority does not have the asset base to retain all of the debt relating to Shannon and Cork. And be very clear – Dublin is hamstrung by the requirement to take on the group’s debt, and recalling that Shannon and Cork have got their new terminals, while Dublin’s is grossly overcrowded without sign of any relief. That’s not to say that state support for Cork Airport might not be justified – simply that there’s no reason for Dublin Airport users to pay the cost.

You might be interested in a thread in commuting/transport where I’m trying to keep track of the issue.

http://www.boards.ie/vbulletin/showthread.php?t=2054887508

http://www.caterersearch.com/Articles/2006/02/24/305433/Worldwide+briefing.htm
Great Southern Hotel to be sold
Leaked documents have revealed that Great Southern Hotels (GSH) will be sold as a going concern, a decision which has been backed by the Dublin Aiport Authority. Directors have decided to sell the loss-making Irish hotel chain “to protect the board from accusations of reckless trading and in the best interests of the stakeholders”. ….

http://www.ireland.com/newspaper/front/2006/0208/2688078765HM1HOTELS.html
Airport authority to sell off Great Southern Hotels chain
The State-owned Great Southern Hotels chain is to be sold off as a "going concern" as group losses climb to a record €6 million. The Government was informed yesterday of the decision by the Dublin Airport Authority (DAA), …. The hotels are valued at €100 million in total, but they are likely to be sold for significantly more. Some of the hotels are trading profitably, for example Dublin airport, but others are loss-making, ….

The DAA …. says payroll costs account for about 34 per cent of turnover at most hotel companies but represent 46 per cent of turnover at Great Southern. It is understood any sale plan will have to go to Cabinet for final approval. Minister for Tourism John O'Donoghue is a long-time opponent of selling the hotels. Two of the hotels are in Co Kerry - at Killarney and Parknasilla near Sneem.

Senior sources said not all political opposition had been removed but most Ministers would be happy for the sale to go ahead when the issue came before Cabinet. The sale proceeds will remain within DAA. It has plans to spend €1.2 billion over the next decade on infrastructure, including a new runway. The pension fund linked to the authority may also need fresh funding.

daithi7

Passenger numbers up at Dublin and Shannon but down at Cork airport m.rte.ie/news/business/2014/0507/615774-daa/

So the Dublin based DAA (it's even written in the tin!!) monopoly have managed to reduce traffic through cork airport, while all the other Irish airports increase theirs. Only a monopolistic semi state like the DAA could manage such a ****e performance.... truly staggering!!

P.s. I bet they'll still get paid bonuses, increments and no staff member will get a review rating below 3/5 even with these pitiful outcomes.

P.p.s. if the government want to create the environment to create more jobs in the SW, they should make Cork airport an independently run entity asap!! In fact they should have done it as promised about 10 years ago!!! Arghhhhhh.....

Balmed Out

very old zombie thread, try here instead

http://www.boards.ie/vbulletin/showthread.php?t=2057083007