Pre-tax profits at the Irish Aviation Authority (IAA) fell by 2 per cent to #7 million (£5.5 million) in 2000, the authority said yesterday.

The fall was primarily due to lower investment income earned during the year, said IAA chairman Mr Donal Geaney.

"The increased capital expenditure programme associated with the new air traffic control centre at Shannon resulted in a significantly lower level of funds on deposit," he said.

As a consequence, investment income was #0.4 million lower than in the previous year, the IAA said.

The new centre is part of the IAA's capital investment programme which, in total, will amount to more than #100 million in buildings, systems and equipment over the next few years, it said. The new systems will be implemented on a phased basis between 2003 and 2005.