A deal between Aer Rianta and a number of low-fares airlines to open up new routes from the Republic could be reached in a matter of weeks.
"We are at all times talking to people who may be interested in operating out of Dublin, including Go and Easyjet and a number of other international carriers who operate on the Continent. We are conducting delicate negotiations at the moment with one or more of those carriers, and we expect to have an announcement within the next two to three weeks," said Mr Noel Hanlon, chairman of Aer Rianta.
Mr Hanlon was speaking after the company announced results yesterday showing a 21 per cent rise in pre-tax profits to £51.47 million (#65 million) last year from £42.23 million, despite the loss of intra-EU duty-free trade.
Last year was the first full year in which the company lost the benefit of duty-free sales within the EU and profits in this area declined by an estimated £33 million, the company said.
Aer Rianta's after-tax profit rose to £38.3 million in 2000, while total group turnover for the year jumped by 14 per cent to £335 million.
The group experienced strong growth in all of its other major business sectors, according to Mr Hanlon. Dublin, Shannon and Cork airports contributed an almost static £23.1 million to after-tax profits.
Aer Rianta's international business in airport management and retailing contributed profits of £11.2 million, a rise of 58 per cent over 1999.
Aer Rianta is seeking an increase in airport charges, which the company said had not increased since 1987. "Only 23 per cent of our group revenue was generated by airport charges, equivalent to £4.22 per passenger," chief executive Mr John Burke said.
Aer Rianta said its profits reflected an average contribution of £1.22 in airport charges per passenger, but it estimates that at least £6 per passenger is needed to fund the future infrastructure investment. More than £120 million would be spent every year in infrastructural developments at company airports over the next five years.
A flotation of up to 49 per cent of the company's shares on the stock market was still on the agenda, said Mr Hanlon. "It won't happen this year. Hopefully, we will be in a position to move forward again in the next two years," he said.
Passenger numbers rose 9 per cent to 18 million, while cargo throughput was up 6 per cent on the previous year, Aer Rianta said.
Traffic in April and May of this year was down by about 4 per cent due to foot-and-mouth disease, according to Mr Hanlon, who expected the same profits for this year as last.
