Cork Airport has announced plans to reduce operating costs, reverse significant ongoing losses and position the airport for sustainable future growth. The initiative follows recommendations by consultants Ernst & Young for delivery of a sustainable business operating model at Cork Airport.
The plan includes the following principal measures:
- A voluntary severance programme to secure a minimum of 32 redundancies
- A full review of existing structures, rosters and staffing levels
- The alignment of remuneration and work structures with aviation industry best practices
- Renewed focus on all opportunities to reduce non payroll costs
- Renewed focus on all opportunities to enhance revenues without impacting on the Airport’s competitiveness
“As has been the case with most businesses in Ireland, Cork Airport has suffered the impact of the ongoing economic downturn and, in our case, the consequent significant reduction in passenger numbers over the past three years,” said Niall MacCarthy, Cork Airport Director. “Unfortunately, Cork Airport’s operating costs have not fallen in line with the decline in aviation traffic and are now also significantly higher than many of its peer airports. The Airport’s relatively high operating costs per passenger have contributed to cumulative cash losses excluding depreciation of €12 million between 2010 and 2012. These losses will be replicated over the next three years if no action is taken.
“Clearly this situation is unsustainable and we must now work with our employees to reverse these losses. The focus at Cork Airport is very much on growing the business, expanding the route network and increasing passenger numbers within a self-sustaining and competitive business model. We will also be seeking the support of our customers and stakeholders in ensuring Cork Airport can compete from a sustainable financial base for the growth opportunities that lie ahead.”
The terms of the voluntary severance package are being communicated to employees and management at Cork Airport plans to enter detailed discussions with trade union representatives as quickly as possible.
Dublin Airport Passengers
Meanwhile, more than 1.8 million passengers travelled through Dublin Airport in September, a 7% increase over the same period last year. Passenger volumes to and from continental Europe rose by 8% with just over 1 million passengers travelling on this route sector in September. UK traffic recorded a 1% increase with more than 580,000 passengers travelling last month.
Transatlantic traffic to North America recorded a 7% increase as more than 178,000 passengers travelled on this route sector in September. Other international passenger traffic, principally flights to the Middle East and North Africa, increased by 92% with almost 45,000 passengers travelling to and from these destinations.
Domestic traffic fell by 17% with 6,000 passengers travelling this route sector last month.
Year-to-date passenger numbers have increased by 1% with almost 14.8 million passengers travelling through Dublin Airport during the first nine months of the year.