Dáil Éireann Debate, Tuesday - 1 June 2004
297 Mr. Crowe asked the Minister for Transport the rationale for transferring the ownership of Dublin, Shannon and Cork airports to Aer Rianta in 1999; the professional and departmental advice he received on the matter in favour or against such a transfer; his estimation of the value of these assets; and if he will make a statement on the matter. [16631/04]
View answer298 Mr. Crowe asked the Minister for Transport if he will report on the economic case made by departmental officials and all professional consultants, hired since 1997, for or against the break-up of Aer Rianta; and if he will make a statement on the matter. [16632/04]
View answer299 Mr. Crowe asked the Minister for Transport the professional and departmental advice he has received on the future projected profitability of Dublin, Shannon and Cork airports; and if he will make a statement on the matter. [16633/04]
View answerI propose to take Questions Nos. 297 to 299 inclusive.
The Air Navigation and Transport (Amendment) Act 1998 provided for the vesting of the three State airports at Dublin, Shannon and Cork in Aer Rianta and for the establishment of the latter as a normal commercial State owned company. Prior to the passing of the 1998 Act, Aer Rianta operated and managed the three airports on behalf of the Minister. Even though Aer Rianta acquired most of the airport assets itself, it held those assets in trust. Some airport property, however, was funded by the State and the company made a payment of £13.9million- €17.65million — representing the written down value of Exchequer funded airport assets — to the Exchequer when ownership of the three airports was vested in it following the passing of the 1998 Act.
There have been a number of consultancy or expert reports in recent years in relation to Aer Rianta and the State airports including the Warburg Dillon Read report of 1999 which reviewed the strategic options for the future of Aer Rianta, the Doganis report of January 2002 on aviation-tourism issues and the Mullarkey report of February 2003 on the independent terminal concept for Dublin Airport. In addition, in May of last year, Aer Rianta submitted to me a copy of a report which the company commissioned from NERA Economic Consulting on competition in the context of Irish airports.
The Warburg Dillon Read report of 1999, while offering some general observations on the issue of separating the three State airports, did not analyse this issue, draw any conclusions nor make any recommendations in respect of it. The work which is being carried out by my Department's current advisers, PricewaterhouseCoopers, PWC, in connection with the Government's decision of July last to restructure Aer Rianta does not constitute a consultancy report or study. PWC, together with legal and aviation experts, were engaged last year to advise my Department on all aspects of the implementation of that decision.
PWC has assisted my Department in its analysis of financial projections and data provided both by Aer Rianta at group level and by the chairmen-designate in conjunction with local Aer Rianta management at Shannon and Cork airports. These working papers contain confidential and commercially sensitive information. They have, however, been provided to the financial advisers engaged by the ICTU and the Aer Rianta unions subject to a strict confidentiality agreement which they entered into with my Department.
It will be a matter for the new airport authorities, when formally established, to develop strategic and business plans, including marketing strategies, for each of the three airports. I believe that with a fresh start both Shannon and Cork airports will be a commercial success and each will maximise sustainable employment both within the airport companies themselves and in their catchment areas. Through more focused commercial operation, all three airports can perform better and each can play a greater role in stimulating and supporting regional and national economic activity to the benefit of their customers, both airlines and passengers, and of Irish tourism, trade and industry.
