Airport could face €160m debt for terminal

CORK’S Lord Mayor demanded a clear statement from the Transport Minister last night on the potentially crippling debt issue facing the city’s airport.

As work on its new €160 million terminal building nears completion, a cloud of doubt still hangs over the details of who will pick up the tab.

The building is due to open to passengers sometime in April.

But Lord Mayor Deirdre Clune said the uncertainty and lack of clarity on the airport’s debt issue by minister Martin Cullen leaves the board of Cork airport “in limbo and in a very vulnerable position”.

Announcing the break-up of Aer Rianta in 2003, the then Transport Minister Seamus Brennan announced that Cork and Shannon airports would start independent operations debt free and that all assets and contractual arrangements would be transferred to the Dublin Airport Authority (DAA).

However the DAA has consistently stated since that the cost of development works at Cork should be borne by the Cork board.

Ms Clune said this position is alarming and totally contrary to what was promised by Mr Brennan.

A spokesperson for the Cork board yesterday confirmed that the debt issue has to be resolved but declined to comment further.

“Negotiations are ongoing on that issue,” she said.

But Ms Clune said if the airport has to carry the debt it would have serious implications on its expansion policy.

“It will adversely affect the competitiveness of the airport,” she said.

She has written to Mr Cullen calling on him to clarify and state clearly once and for all who will bear the development costs.

“I call on Minister Cullen to honour the commitment made by the former minister Seamus Brennan that the new development costs in Cork airport will be met by the DAA,” she said.

Cork Airport has carried out its significant expansion policy over the last few years on the understanding that the estimated e160m cost to develop the new works would be met by the DAA.

“If Cork Airport is to compete on a level playing pitch with Shannon and fulfil its vital infrastructural role in regional development, it is essential that the new Cork board does not inherit an unfair debt,” Ms Clune said.

The expansion has helped drive a massive increase in passenger numbers and has resulted in the establishment of a number of new routes to and from the airport.

A total of 2.7 million visitors passed through the airport in 2005 - up 20% since 2004. Airport chiefs announced earlier this week record passenger numbers for the month of December - up almost 35% on the same period last year.