Airport asked to freeze charges until debt resolved

MANAGERS at Cork Airport have been asked to freeze all airport charges until the controversial debt issue has been resolved.

The call came yesterday after weekend reports that Cork Airport Authority (CAA) is considering a range of steep hikes should it have to shoulder some of the costs of its new €160 million terminal.

The CAA has proposed a 900% increase in airline's check-in desk fees from €3,000 to €28,000 per annum.

Passenger charges could also jump from €9 to €13 a move that would make Cork significantly more expensive than either Shannon or Dublin airports.

The authority has also floated the idea of charging all non-CAA employees for parking a move that would hit hundreds of staff working for freight companies based at the airport.

The proposals were outlined at what sources described as a fractious meeting between the CAA and members of the Airport Operators Committee which represents airlines and airport users.

The CAA yesterday declined to comment on the proposed hikes or when they might be introduced and said confidential talks are ongoing.

Fianna Fáil Cllr Tom O'Driscoll said the hikes would make the airport less competitive and could force airlines to axe flights.

"The practice of airports hiking up charges to generate extra revenue is no longer a feature of the aviation industry," he said.

"I am confident that the issues relating to the airport debt will be resolved in the months ahead. But it is important that no preemptive action is taken which could threaten the outstanding success of the airport in recent years."

He has tabled motions for the next meetings of both Cork City Council and the South West Regional Authority, calling for the charges to be maintained at current levels until the financial position of the airport is clarified.

Meanwhile, BDO Simpson Xavier, one of the country's leading business and financial advisors, confirmed yesterday that they have been appointed to broker talks between the CAA and Dublin Airport Authority to resolve the debt issue.

Their recommendation is due by the end of March.

There are fears that despite a 2003 statement by former Transport Minister Seamus Brennan that Cork would start independent operations debt-free, the airport may have to carry up to half the debt. However, Cork's Lord Mayor Deirdre Clune (FG) said it will ultimately be a political decision as to how the debt issue will be handled. She said the Government must honour its 2003 pledge.