Debt-free airport to pay fees to Dublin

Mary Dundon, Political Reporter

But EU company law will force the Cork Airport Authority to pay a minimum annual fee to the new Dublin Airport Authority for the lease of their new terminal building, Mr Brennan revealed for the first time yesterday.

The minister made the revelation following the first meeting of the new Cork Airport Authority board, which he attended.

There is a technical, legal and accountancy issue which will require a leasing arrangement on the new Cork terminal building in the short term, Mr Brennan said.

“I want to stress that there will not be a debt at the opening of the Cork Airport Authority’s balance sheet, but a requirement to lease the terminal at a rate that is affordable,” he told a news conference.

Ireland is obliged to comply with EU law and it prohibits the giving away of assets if you do not have enough profits in your company to cover them. “One way of keeping profits in the company and allow the early giving away of Cork is to have some cash flow from Cork to Dublin,” the minister added.

Dublin has been instructed to keep the lease to a minimum and the new Cork Airport Authority board is not worried about it, the minister said.

But the independent Shannon Airport Authority will not have to pay a similar fee to the Dublin Airport Authority that takes over the responsibility of the parent company Aer Rianta from October 1. This is because Shannon is substantially more valuable than Cork in accountancy terms on balance sheets.

The minister said he had every confidence in the new Cork Airport Authority. “This is genuinely a historic day for Cork and the country because there are now three State-owned national airports in the country and they are all equally important,” he added.

Cork Airport Authority chairman Joe Gantly said he was not worried about this technical leasing arrangement with Dublin.

“It will be structured in such a way that it will allow Cork to prosper,” Mr Gantly said.

The new authority must now prepare a business plan for the future of the company before next April, when it will take over full control of running Cork Airport.

Mr Gantly said it was a tremendous honour for him to lead this new company and the experience of the board members will help in devising the business plan and consulting with all the major stakeholders.

“The airport authority wants to grow the airport in a very aggressive manner - it is a critical part of the region’s infrastructure and development and we have a significant responsibility to the population of the region to grow and develop it,” Mr Gantly added.

Part of the business plan would be trying to develop transatlantic flights out of Cork if the current negotiations of the bi-lateral agreement with the US allow it.

The new Cork Airport Authority members include: Pat Dalton, Loretta Glucksman, Humphrey Murphy, Don Cullinane, Alf Smiddy, Veronica Perdisatt and Eoin Ó Cathain.