THE DUBLIN Airport Authority, which operates Ireland’s three international airports, made a loss in 2009 of €13 million. Net debt ballooned as the effects of the recession and a major investment in facilities hit its bottom line.
DAA’s net debt stood at €616 million at the end of 2009, more than three times the €188 million of the previous year. This sharp rise was fuelled by the construction of Terminal 2, the centrepiece of a €1.2 billion revamp of Dublin airport.
DAA chief executive Declan Collier said debt would rise to more than €800 million by the end of this year and close to €1 billion over the next couple of years.
But he insisted the DAA was well funded and highlighted a restructuring programme with staff that will shave €38 million a year off its costs and reduce its headcount by 300.
The DAA has undrawn facilities of €560 million, including a €260 million facility with the European Investment Bank. This will enable the airport operator to repay a €250 million bond due to mature in 2011.
“We’ve stabilised the business and our immediate funding position is secure,” Mr Collier said.
The DAA’s turnover fell by 13 per cent last year to €547 million as the Irish economy collapsed. Group profit after tax halved to €25 million.
A similar picture emerged at its duty free subsidiary, Aer Rianta International, whose surplus halved to €13 million.
Exceptional costs of €51 million placed the DAA into the red.
In spite of its difficult financial position, the Government took a €19.4 million dividend from DAA in 2009. “There are lots of things we could have done with €19 million but it was decided [a dividend] would be paid in 2009,” Mr Collier said. “As a shareholder, the Government is entitled to be paid dividends.”
The DAA’s financial position hasn’t been helped by the disruption caused by the volcanic ash crisis. It estimates that it has lost €7-8 million in revenue. As many as 3,200 flights were cancelled and 400,000 passengers were affected. It refunded aircraft parking charges and car parking fees during the six-day disruption.
Passenger traffic slumped by 13 per cent last year at Dublin, Shannon and Cork airports to 26.1 million. This had a major impact on retail revenues, which fell by 17 per cent to €244 million.
At Dublin, traffic was down 13 per cent to 20.5 million. Mr Collier expects passenger numbers this year to be “between 19 million and 19.5 million”. The biggest fall was recorded in Cork, where traffic declined by 15 per cent to 2.8 million. In Shannon, passenger numbers were down 12 per cent at 2.8 million.
The accounts show that Mr Collier’s total remuneration in 2009 was €568,100 compared with €638,500 in the previous year. His basic salary was €320,000 last year but has been reduced by 6 per cent in 2010 to €308,000.
The 16 directors who served with the DAA last year were paid €187,000 in fees. New chairman David Dilger earned €19,200. His predecessor, Gary McGann, who resigned last year following controversy about his involvement as a director with Anglo Irish Bank prior to its nationalisation, was paid €7,500 in 2009.
Mr McGann earned €35,000 in 2008.
The restructuring plan agreed with unions involves a pay freeze until 2011 and an average cut in wages of 5.5 per cent for staff earning more than €30,000.
