DAA forecasts loss and cancels second runway for Dublin

The Dublin Airport Authority (DAA) which manages the three state airports at Dublin, Cork and Shannon has forecast a loss for 2009 and an even higher loss in 2010 if current trends continue.

Speaking as the DAA published it's financial results for 2008, the Authorities Chief Executive Declan Collier said that traffic figures that "Passenger traffic is falling at our three airports in line with similar declines at airports throughout Europe". During 2008, passenger numbers fell marginally but in recent months the situation has worsened significantly with the company now forecasting an 11% decline in numbers for the year. As a result, the DAA has decided to reduce it's capital expenditure at Dublin Airport by 50% for the period 2010 to 2014, to less than €400m. Among the projects being mothballed are the second runway and additional aircraft parking spaces. The existing runway will now be repaired and taxiways which are up to 40 years old will be replaced.

The DAA has now said that "it is imperative" that the Commission for Aviation Regulation sanction a price increase in passenger charges to cover the cost of the projects being delivered at Dublin. 

T2 will now be completed in February 2010, twelve weeks behind schedule. The DAA has agreed with the main tenant of T2 (Aer Lingus) that the terminal will not be fully operational until November 2010 "to coincide with airline scheduling and allow for efficient commissioning and testing". 

Excluding exceptional items, the DAA made a profit of €78m for 2008, a 28% YoY decline over 2007. Combined passenger numbers at the three airports were down 0.6% YoY at 29.9m. 

Responding to today's results Ryanair called on the office of the CAG (Comptroller and Auditor General) to launch an urgent inquiry into the DAA monopoly as the airline believes that " DAA monopoly is yet again "gaming" the regulatory system".

In a four point criticism of the DAA, Ryanair has called on the Authority to explain "what it has done with the €800m proceeds it has received over the past two years from the sale of the Great Southern Hotels Group and it's investment in Birmingham, Dusseldorf and Hamburg Airports. Since these proceeds have not been used to pay down airport debts incurred by the DAA at Cork, Shannon or Dublin, the DAA must explain where this €800m has been squandered."

Posted 090424