Cullen tight-lipped on 2003 airport pledge

THE transport minister kicked for touch yesterday over the potentially crippling €160 million debt facing Cork Airport.

Martin Cullen said he wouldn’t comment on his predecessor Séamus Brennan’s promise in 2003 that the airport would start independent operations debt-free. Last month, the board of Cork Airport told an Oireachtas committee it was factoring the 160m cost of its new terminal into its business plan.

This is despite Mr Brennan’s comments at the announcement of the break-up of Aer Rianta in July 2003 that Dublin Airport would carry the debts of both Cork and Shannon. However, in Cork yesterday, Mr Cullen said it was not yet certain what the position would be.

No decision can be made on finances until both he and the finance minister are given access to the three airports’ business plans, which he expects to be finalised shortly, he said.

But it emerged yesterday that it could be up to three years before the Government-appointed consultants finish examining the plans. Meanwhile, the Government was accused during a meeting of the South West Regional Authority’s airport consultative committee yesterday of spending more time dealing with Dublin Airport’s second terminal issue than it is spending on Cork Airport issues.

The meeting was told that the board of Cork Airport is looking at the possibility of leasing their new terminal from the Dublin Airport Authority in a bid to escape the debt.

The cost could affect the airport’s ability to attract new business, sources warned.

“A likely solution is that the DAA may lease the terminal to Cork,” a source said. “A lease in theory could range from €1m a year to €10m a year. How much will they pay for the lease will have to be worked out,” he said.

“The more Cork has to pay to service the debt, then the more difficult it will be to offer discounts to airlines,” he said.

Shannon is Cork’s main competitor. Because its infrastructural work is complete, Shannon is debt-free.

“If Cork has to carry this debt, we will have little room for manoeuvre,” the source said.

“There is real intense competition in the market today. If Cork is saddled with a huge lease, growth at the airport could be stopped; there could be a decline in business.

“If you don’t do more business you have to cut costs in other areas. This is obviously a worry for staff,” he added.