Waiting to take flight
At Cork Airport, a picture is being painted of an operation that has no desire to compete for business with other European locations. Ryanair says the charges at the airport are too high and analysts say management have no real say in how the airport is run. It is located in Ireland’s second largest city, but has yet to attract any long-haul carriers.
Most say the problem is the airport’s lack of independence.
Cork Airport is under the control of the Dublin Airport Authority (DAA) and this will remain the case until at least 2011. One local politician said he doesn’t believe the deadline for separation set by the Government for December 2011 will ever happen.
“That’s not going to happen. I’ve even heard people say that Cork Airport are not even too keen on separation now at this stage,” he said.
Another worker at the airport said he believes airport management and staff are more than happy to remain under the DAA umbrella.
“Why wouldn’t they be. As long as Cork Airport is owned by the DAA we don’t have to worry about the debts,” he said.
A new terminal is the reason Cork Airport is saddled with €113m debt. And while impressive, four years on the terminal has yet to fulfil its potential.
There were plans to bring five million passengers through the terminal, which boasts 30 check-in desks. But analysts have now cast doubt on the need for so many desks given the move by many airlines to self-service kiosks and passenger numbers are nowhere near five million.
In early 2008, the airport’s board agreed to accept a €113m debt associated with the terminal in order to secure its independence from Dublin Airport. Independence, however, now seems like a long way off.
The terminal opened in August 2006, at a time when people were travelling and times were good. Fast forward four years and the airport finds itself reporting plunging passenger numbers amid one of the worst eras ever for the aviation industry.
Blows have come with BMI Baby recently saying it is axing two routes from Cork to Manchester and the East Midlands.
But with these blows have come positive news with Ryanair announcing plans for sun routes during the summer and Aer Lingus and Aer Arann signing a franchise agreement that will see a new route to Glasgow .
This came after airport management was accused of not doing enough to attract new business by Pat Dawson, the incoming head of the Irish Travel Agents’ Association.
Air Malta, Czech Airlines, Easyjet and Air Wales are other airlines that have cut flights from Cork in recent years.
Passenger numbers fell 15% last year to 2.77 million, from a record high in 2008 of 3.25m.
The drop is easing, however. In the first two months of this year, passenger numbers were down 11%. In the week of the Cheltenham festival 50,000 people passed through the airport, the same as the previous year.
There was a time when things looked promising at the airport.
Slattery Travel in 2005 announced plans for flights between Cork and New York but soaring fuel prices quickly led to the scrapping of that route.
Forces outside the control of the airport, such as fuel prices and a dwindling economy have hit the airport hard.
But management say they are working hard to attract airlines. In place at the airport is a New Route Support Scheme, which offers discounts to airlines which agree to start routes. In year one, airlines are offered a 100% discount, falling on a sliding scale over five years.
“We are sharing the risk with the airline, offering the discounts as well as marketing support,” said Cork Airport’s marketing manger, Kevin Cullinane.
Compared with other European airports this discount scheme is pretty competitive, he said, adding some airports don’t offer any full-year discounts.
Mr Cullinane is quick to point out that the airport has not been immune from the economic crisis but said downturns come and go and he is confident that the airport will bounce back.
“We live on an island and people will always need to travel,” he said.
But the airport is suffering. Mr Cullinane admits that retail footfall was down last year but that followed a record year in 2008.
“Spend per passenger is holding up however but consumers are looking for value,” he said, adding that for every two passengers three people accompany them to the airport.
Mr Dawson’s claims didn’t help the profile of the airport. He claimed he was the only person at the checkout desks on a Tuesday morning at 10.10am.
Mr Cullinane said however that passengers pass through the airport “in waves” and the busiest time is between 6.30am and 9am. He said the airport management is doing “everything possible” to try and attract new airlines.
Management were in London and Berlin recently meeting airlines. They will shortly head to Vancouver for an airline conference where they will also present their case why airlines should operate at Cork.
Management meet Aer Lingus, Ryanair and Aer Arann “at least once a week”.
“We are out there making the pitch, but it takes a lot of work and a lot of negotiation to get an airline here,” said Mr Cullinane.
“Considering the state of the economy we’re managing to hold onto connections. There is a sizeable core market served from Cork and we have good connections to Europe.”
The airport doesn’t seem concerned about what lies ahead. It is talking about possible extensions to the new terminal in the future. It also plans to one day knock the old building and use the space for parking. It doesn’t feel guilty that it has a brand new terminal because it said that there was enough under-investment in the country for years and Cork Airport deserved a new building. It said that while it remains under the control of the DAA the debt is a “non-issue”.
Whatever lies ahead it seems Cork Airport is happy to go about the day job and the Government is happy to control the three biggest airports.
But the people losing out are the passengers. Analysts believe Cork would fight harder for new routes if it was independent of the DAA. But this independence seems a long way off.
CONNECT WITH US TODAY
Be the first to know the latest news and updates
