THE IRISH Aviation Authority (IAA) paid €16 million last year to shore up its defined benefit staff pension scheme but still ended 2007 with a deficit of €56 million in the fund's liabilities.
This emerged in its annual report published yesterday. The payment more than wiped out the €14.7 million after-tax profit achieved last year by the commercial State body, which has responsibility for aviation safety standards, air traffic control and all flights over Ireland.
The IAA's 658 workers enjoy pension benefits similar to civil servants. It makes a 30.75 per cent contribution on their behalf with staff paying nothing.
IAA chief executive Eamonn Brennan said "very serious discussions" were taking place with the trade union Impact on changing the terms of the pension scheme.
"We're working on proposals," he said. "There will be changes in it this year. It's an issue for us."
He declined to outline the changes being sought. They could, however, include staff making contributions and different terms for new entrants.
No comment was available from Impact.
The IAA enjoyed a record year in 2007. Turnover - which comes primarily from charging aircraft using Irish airspace - soared by 14.8 per cent to €154.3 million.
Its after-tax profit increased by €1 million to €14.7 million. No dividend was paid to the Government.
Staff earned an aggregate €56.1 million in wages and salaries in 2007 - an average of €85,258. Another €11.8 million was paid in pension and social welfare costs.
The volume of commercial aircraft using Dublin, Shannon and Cork airports increased by 6.6 per cent to 267,828. Traffic through Dublin was up 8 per cent, while Shannon recorded growth of 1 per cent and Cork 5 per cent.
The number of aircraft that flew over Ireland without landing - mostly on transatlantic routes - increased by 5.5 per cent to 310,831 movements.
Mr Brennan said 2008 was likely to be a tougher year for Irish aviation. "The current year might not be as rosy for airlines," he said. "There's a squeeze on fares while at the same time costs are rising."
In the first 14 weeks of 2008, he said the number of aircraft using Shannon was down 1 per cent while Cork reported a decline of 1.6 per cent. Dublin was up about 6 per cent. The report shows that 1,132 aircraft were registered here at the end of December, compared with 981 in 2006. There were 162 helicopters registered in 2008 compared with 56 in 2000.
