Plan to build second runway at Dublin Airport "deferred"

Amtmann

From today's Irish Times: http://www.irishtimes.com/newspaper/frontpage/2008/1218/1229523051614.html

CIARAN HANCOCK, Business Affairs Correspondent

DUBLIN AIRPORT Authority has told trade unions that it will seek voluntary redundancies early next year at Dublin, Cork and Shannon airports as part of a plan to save €20 million in costs.

The move is in response to an anticipated decline in passenger numbers and fall in profits both next year and in 2010.

The cuts are in addition to €15 million in savings that have already been implemented by DAA for 2009.

DAA employs just under 2,700 staff in Ireland, who are represented by Siptu, Impact and Mandate.

It is understood that talks with the unions will begin before Christmas. Siptu official Dermot O'Laughlin said the union had so far received no details of the cuts being planned.

In a bleak pre-Christmas message to staff in the latest edition of the airport manager's internal newsletter, Connect, DAA chief executive Declan Collier said "the majority" of the €20 million savings would be from cuts in payroll, which account for two-thirds of its costs.

"These discussions will focus on the need for action across a wide range of issues including voluntary severance, non-recruitment, overtime, absenteeism and discretionary staff payments," Mr Collier said.

DAA has already frozen senior executive pay for next year and no bonuses will be paid.

DAA's payroll bill has been growing by 7 to 8 per cent annually in recent years, which Mr Collier said was "not sustainable and must be addressed immediately".

He said revenues from its car parks and shops have "fallen" this year and are "likely to worsen".

Staff have also been told by Mr Collier that its plan to build a second runway at Dublin airport, at a cost of more than €200 million, has been deferred due to the decline in passenger numbers.

"We now feel the airport will not experience significant capacity constraints on the runway system for a number of years, thereby pushing back its commencement date," Mr Collier said. It is understood that the runway, which was due to open in 2014, could be deferred by three or four years.

Mr Collier warned that DAA's profits this would be "lower" than in 2007, when it made an operating profit of €111.6 million. "The company is exposed to further falls in profit in 2009 with the situation potentially worsening markedly in 2010," he added.

Passenger volumes "could fall across the three airports in 2009" and also in 2010, "depending on the economic outlook".

He said passenger numbers have declined in the past three months at the airports. While Dublin and Cork will show "modest" rises in passenger numbers for 2008, Shannon's figure will be lower. The three airports handled a record 30.1 million passengers last year.

Mr Collier said the DAA's large investment in Terminal 2 at Dublin airport would be unaffected by the cutbacks.

The proposed €20 million in savings does not include the DAA's duty free subsidiary Aer Rianta International, which employs 495 staff, mostly at retail operations outside Ireland, and is managed separately.


This article appears in the print edition of the Irish Times

D'Peoples Voice

Does anyone think that if Cork airport was being built now, its design would have been altered somewhat!
So what do you do when you make cock-ups in the past, ah yes, blame your staff and reduce their wages!

dowlingm

The second runway was supposed to be longer, giving more takeoff roll for heavily laden long range flights. Now the existing runway won't be extended and the second runway isn't happening. In fairness given the bloodbath in the aviation sector it may not be necessary to have a second runway for a while again, but construction of a runway extension to the existing 10/28 should be pushed for.