THE DUBLIN Airport Authority (DAA) earned revenues of €52 million in 2007 from its car parks at Dublin, Cork and Shannon airports, according to the prospectus issued for its recent €600 million Eurobond fundraising, writes Ciarán Hancock.
This represented 8 per cent of DAA's group turnover and is the first time the company has made public the amount it earns each year from its car parks.
DAA operates short- and long-term car parks at all three airports. It has 21,000 car park spaces in Dublin alone, which are thought to account for about three-quarters of car park revenues.
The DAA faces significant competition to its car parking operations at Dublin and it discounted its long-term parking fees for the month of June to stimulate business. Rival operators include Quick Park, which is run by former Aircoach owner John O'Sullivan, and Bewleys Hotel.
The DAA prospectus, issued by DAA Finance plc, also revealed that Aer Rianta International (ARI) achieved "consolidated" turnover of €116 million in 2007 from its duty-free shops in Russia, Ukraine, Cyprus, Germany, the Middle East, North America, and the Caribbean. This represented 19 per cent of DAA's turnover.
Again, this is the first time that the DAA has published a precise turnover figure for ARI, although it does state the subsidiary's profit contribution in its annual report each year. In 2007, ARI's profit contribution was €29.1 million, excluding exceptional items.
The prospectus shows that DAA earned €209 million in 2007 from "aeronautical activities". This represented one-third of its turnover, a lower percentage than that achieved by most airport managers in Europe from airport charges.
The DAA's next biggest earner is its directly managed retail shops at Dublin, Cork and Shannon, which achieved turnover last year of €150 million. This included concessions and catering activities and represented 24 per cent of the airport manager's group turnover.
Revenues from rents, non-retail concessions (car hire and foreign exchange) and advertising amounted to €52 million, while it also got €33 million last year from an aviation fuel supply business in Shannon. The DAA's group turnover rose by 5.6 per cent last year to €623.4 million, while passenger numbers were up 8 per cent to 30.1 million.
According to the prospectus, an arbitration award of $9 million was made in 2002 in an "overseas jurisdiction" against a former subsidiary of ARI. "The group is aware that litigation proceedings are currently being taken in that jurisdiction seeking enforcement of this award against ARI," the document states.
Closer to home, DAA faces a potential arbitration claim in relation to a construction contract for infrastructure works, while a former owner of land adjacent to Dublin airport has issued proceedings in relation to a failed planning application for the property. The litigants are not named.
