Competition to run Kerry/Dublin air link intense

THERE is intense competition to operate Government-funded flights between Kerry and Dublin it emerged last night with several operators submitting tenders to run twice daily services.

The deadline for the receipt of tenders was July 4 and the Irish Examiner has confirmed that “several” operators have submitted public service obligation tenders and that a decision is expected in November.

Passenger numbers grew by 3% at Kerry Airport in 2010 to 424,599. However, the real impact of the withdrawal of two of three daily return Dublin flights, after Ryanair suspended its government subsidised regional flights in November, will only be seen in this year’s end-of-year results, airport chairman Denis Cregan warned.

According to figures, released in advance of the airport’s annual general meeting at the end of July, for the 14-month period ended December 31, 2010, pre-tax profits were €407,559 (2009 12 months €339,355). Operating profits were €247,724 (€179,239).

Passenger numbers grew to 424,599. This was up 3% on the previous 14 months. However, Kerry-Dublin passengers fell by as much as a third, 33%, with the London route also down. Passenger numbers on the Frankfurt-Hahn and Dusseldorf German routes wasup by almost one-fifth or 19%. The car park generated revenue of €513,882 (€387,645)

Revenue for the period of €7,506,734 (€6,252,221) was due to high fuel sales and the longer reporting period of 14 months. Administrative expenses jumped €5,812,306 (€4,265,201). The company has €4.89m in cash, down from €5m in 2009.

“A growth in traffic for the period of 3% is satisfactory against a national performance of minus 10%. However, we encountered significant challenges during the period and the discontinuance of the PSO in the final quarter of 2010 has had an impact on both our final passenger numbers as well as our bottom line.

“However the real impact of same will be felt in our final 2011 results,” said Mr Cregan.