Presentation on theme: "Ireland West Airport Knock An airport for growth and jobs."— Presentation transcript:
Ireland West Airport Knock An airport for growth and jobs
Corporate background The Airport is owned by a Trust signed in 1991 by the Minister for Transport and the Airport Trustees on behalf of the people in the West The Trust delegated the running of the Airport to Connaught Airport Development Company Ltd (CADCO) An Airport to stimulate enterprise and jobs Any dividends or profits must be re-invested in the company (CADCO) and therefore there are no private shareholders.
355 hectare Site 2,300m Runway 7,080m 2 Terminal building 6,000 mile range CAT II ILS low visibility landing system 25 hectare Enterprise Zone
Passenger Growth: was the busiest year in the airports history! 5% growth to 685,000 passengers 28 Destinations
Performance and efficiency A lean, low cost airport with small management Flights with no operational delays99% Staff multi-tasking66% Turnover 13.6m Government subvention in m – i.e. 4% of turnover
Origin of passengers using Airport in 2012 Source: Passenger surveys
Base = 520 responses Good spread of counties visited by tourists from Europe in 2012
Regional Economic Return Direct employment 150 Jobs supported in wider region900 Number of tourism bed nights 900,000 Regional tourism spend111m Employee tax/PRSI pd to Exchequer 1m Annual contribution to GVA17m Regional jobs impacted by airport 6,200
The Social Dividend
New Route Development-UK
New Route Development-Europe
New Route Development-Germany
Proposals to Government in 2011/2012 Grow passenger numbers to 1.25m Double tourism spend to 240m Support a total number of jobs 1,900 Increase Government tax revenues to 45m Attract new enterprise park jobs 500 Cost of investment over 5 years 75m Joint strategic planning requested by airport for financing growth and jobs targets
Minister urges change of Gov. policy to curtail Knock If nothing was done for Shannon the airport stood in danger of being passed out by Knock airport in passenger numbers, despite a current gap of over 900,000 passengers …I think if the trends continue as they are it will happen because Shannons numbers are already down 20 per cent this year and Knock is still growing. It is only a matter of time without a change in policy. Irish Times 31 st March 2012
Government Response Ireland West Airport Knock is a private owned entity No revenue support for the airport post 2014 Refusal to engage in a joint plan Fear that Ireland West Airport Knock will overtake Shannon Airport in terms of passenger numbers Acceleration of efforts to finance Shannon Airport
Gov. Investment in Shannon Investment package totalling 300m Debt financing 100m+ Transfer of annual rental income to airport12m Transfer of assets worth 90m Provision of cash flow in January m Freeing up of pension liabilities & the sale of other assets Indication of more incentives which other airports can apply for but which Shannon Airport is able to use immediately Shannon is in the best place to avail of any tax breaks, even if they do apply to other airports. Minister Varadkar 3 rd Jan. 2013
Our position on Governments decisions on Shannon We are supportive of Shannon Airport and its region as part of the West of Ireland Have a history of working in co-operation with Shannon However both airports compete in the same markets Government decision is unfair, anti- competitive, possibly illegal and damaging Ireland West Airport Knock
Market distortion Government ignored its own advisors Booz and Co who evaluated the prospects for Cork and Shannon airports in Government was warned not to proceed with a support package for Shannon Airport without clear consideration of the competitive implications for other airports.
Shannon/Knock comparison prior to Dec 2012 SNN package Comparison criteriaShannon Airport Ireland West Knock Commercial passenger numbers m0.685m Passenger performance in past 5 years63% fall20% rise Government investment in past 10 years160m15m Annual net loss levelsc. 8m0.6m Cost per passenger of sustaining these losses Additional annual subvention of Air Traffic Control costs c. 3m0
Investment in State airports compared to Knock Investment periodState airports Ireland West Knock Multiple Capital investment DAA 1.6bn 15m107 Investment Shannon 300m 4.1m73
Potential risks to IWA Knock Passenger and tourism losses 300,000 Revenue losses to region up to 240m Direct threat to jobs 3,500 Damaged ability to attract new jobs 500 Future viability seriously threatened
An Airport for Jobs and Growth On behalf of the Board of Ireland West Airport Knock, we thank you for your time and look forward to working with you into the future for the benefit of the region.