Plans for second runway at Dublin Airport scrapped
The Dublin Airport Authority said it has to introduce a number of cost-cutting measures because of a significant drop in profits and passenger numbers last year.
Its annual report shows that profits at the company are down by 28%, while passenger numbers dropped by over three million and are expected to drop by a further 11% this year.
The group says it will be engaging with staff in the coming weeks, to discuss ways to reduce its operating costs.
The DAA is also seeking a price increase on passenger charges from the Commission for Aviation Regulation, to cover the costs of its new passenger terminal, which is due to be completed by 2010.
Passenger numbers at Dublin, Cork and Shannon airports have dropped for the first time in 18 years, the DAA said, adding that business is expected to get even worse over the coming year.
The economic slump has seen the first decline in passenger traffic at the three airports since the Gulf War in 1991, with numbers expected to be down a further 11% this year.
“The company is facing a very difficult financial situation,” said Declan Collier, DAA chief executive.
“This is the deepest recession since the 1930s and it is having a huge impact on the aviation sector.”
The economic slump has seen the first decline in passenger traffic at the three airports since the Gulf War in 1991, with numbers expected to be down a further 11% this year.
