Cork airport will only be ‘viable’ with €60m debt

CORK Airport can only afford to carry a maximum debt of €60 million, according to a new report.

Consultants hired by the Cork Airport Authority (CAA) to examine the airport’s financial situation have prepared a detailed report that says it can only be viable as an independent entity with a debt level of between €50m and €60m.

This is up to €40m less than the €100m debt figure suggested in a report on the airport’s financial health commissioned by the Dublin Airport Authority (DAA) last year.

The DAA still controls the CAA until the break-up of Aer Rianta has been completed.

That report sparked a furious reaction in Cork last year because of a Government pledge in 2003 that the CAA would start independent operations debt-free.

Debts of up to €100m would cripple CAA’s ability to expand and develop the airport’s business, experts warned.

The issue has been the focus of a major political battle since, with opposition parties constantly accusing the Government of reneging on its debt-free commitment.

An under-fire Taoiseach warned earlier this year that CAA would have to take responsibility for €100m of debt or else stay under the DAA’s control. His comment prompted the CAA to hire its own consultants to prepare an “independent” report.

However, despite the fact that this new report strengthens their bargaining position, it emerged last night that board members have refused to accept a briefing on its contents.

Senior airport managers attempted to present the report for discussion at a board meeting last week in an effort to break the impasse.

But it is understood that CAA board members refused to consider it in the absence of further details, including a final airport business plan.

The board has consistently said that it wants the Government to honour its 2003 debt-free pledge.

It appeared last night as if a bitter boardroom battle is looming over the situation.

The CAA declined to comment yesterday. A spokesperson said they could not comment until the report has been considered by the board.

PD senator John Minihan reacted angrily to the report last night and called for its details to be made public.

“I cannot understand how the consultants arrived at this amount. We need to know on what basis the amount was calculated,” he said.

The next CAA board meeting is due on May 28, the week after the General Election, but it was not clear last night whether board members will consider the report at that meeting.