Aer Arann, the Galway-based regional airline, made a profit before tax of €2.6 million last year. The company's accounts show a 63 per cent increase in sales for the year to December 2003 and indicate the airline has moved away from its dependence on Government subsidies.
Turnover rose from €26.8 million to €43.7 million, reflecting the expansion of the group's scheduled routes. Gross profit on these routes rose from €2.6 million to just over €9 million.
The increase in sales was split between domestic and UK routes. Sales on routes between the Republic and the UK rose from €5.3 million to €15.6 million.
The subvention from the Government for operating routes under the Essential Air Services (EAS) programme rose from €16.5 million to €17.5 million, but the cost of flying these routes rose from €11.2 million to €16.5 million.
In the past Aer Arann has relied on contributions from its subsidised routes business to be profitable. But the most recent set of accounts show that the company was profitable without the net contribution of just over €1 million from the EAS routes.
The company has also wiped out the deficit on its balance sheet of €330,000 and finished the year with net shareholders funds of €1.9 million. Cash in hand at the year-end rose from €5 million to just under €12 million.
According to the accounts the company had bank loans and finance lease obligations totalling €1.16 million.
The number of employees rose from 223 to 288, with staff costs rising from €6.9 million to €9.3 million. Directors' remuneration fell from €477,335 to €280,347 and the directors received no fees. The two directors are listed as Mr Pádraig Ó Ceidigh and Ms Caitlin Ní Cheidigh. Directors' loans stood at €460,835 at year-end as against €705,218 in 2002. The company is ultimately controlled by Mr Ó Ceidigh.
The accounts also detail consultancy payments to two former Aer Lingus executives. Mr Larry Stanley, former acting chief executive of Aer Lingus, received €22,225, while Mr Paul D'Alton, former chief financial officer of the national carrier, who is currently finance director of Waterford Wedgwood, was paid €54,450. Both men joined the board of Aer Arann subsequent to the year-end.
The company expects turnover to reach €80 million this year and currently operates five routes under the EAS programme and another 17 on a purely commercial basis.
The airline recently began flying from Knock to Liverpool and is looking at the possibility of opening a route from Galway to Lorient in France.
