Cork Airport deal 'to reduce debt burden'

The Government is close to ending the row over Cork Airport Authority’s debt, a senior Fianna Fáil politician has said.

Fianna Fáil and the PD’s had faced an election backlash over the huge debt which is currently levied on the Cork Airport Authority (CAA) under the existing takeover plan.

At the moment the authority must carry €100m of the overall €220m debt

However, a senior Fianna Fáil politician predicted today that a revised plan will be announced within weeks.

Deputy Noel O’Flynn also disclosed that the Government is understood to have blocked the sell-off of any more land at Cork Airport, pending an agreement on the takeover by local management.

Deputy O’Flynn said he believes that the proposals being put to cabinet in the coming weeks will “significantly reduce” the financial burden on the new Cork Airport Authority.

Sources indicated land held by Cork Airport will not be sold off in advance of the company being handed over and will be an asset to the new company.

Land in the airport haD been offered for sale or proposal for development recently by the existing body in charge of Cork Airport, Dublin Airport Authority.

Deputy O’Flynn said he believed an “acceptable compromise” had now been identified.

He said: “I am happy that we have stopped the sell off by the Dublin Airport Authority of valuable land holdings in the airport, in advance of the takeover.

“I understand that the land, which is suitable for major development and worth in the region of 130 million, will remain in the ownership of the new Cork Airport Authority as part of the hand-over deal.”

The president of Cork Chamber, Roger Flack, welcomed the proposal, adding that the land holding was a critical factor for the new management company.