PRESS RELEASE

22/02/2006

Cork Airport’s debt must be resolved after Ryanair’s dire warning - Kelleher

Cork North-Central Fianna Fáil TD Billy Kelleher has renewed his call to the Government to resolve Cork Airport’s €200 million debt after low-cost carrier Ryanair’s dire warning that it may withdraw its flights over proposed new fees to cover the cost of the new terminal.

Deputy Kelleher said the airport would be in ‘serious financial jeopardy’ if Ryanair pulled out and urged Transport Minister Martin Cullen TD to do all he could to resolve the debt impasse before the new terminal opens in May.

‘Already, Ryanair deputy chief executive Michael Cawley has said the airline is reviewing its flights from Cork to Stansted, Dublin, Gatwick and Liverpool. Ryanair is facing extra annual costs of up to €100,000 as a result of a 900pc check-in fee increase proposed by the Cork Airport Authority. Passenger charges could jump from €9 to €13,’ said Deputy Kelleher.

The deputy Government chief whip said the money ‘will have to come from somewhere’ to cover the costs of the new terminal - but it must not come from passengers’ pockets or from the airport’s own coffers.

‘The Cork Airport Authority will shortly present its business plan to the Department of Transport. It must make a strong case to Minister Cullen that he take the debt from Cork. That was the original agreement negotiated by the then Transport Minister, Séamus Brennan TD, during the break-up of Aer Rianta in 2004.

‘The capacity of Cork Airport is set to increase to 3 million passengers annually from 2.5 million last year. By 2016, it will reach 4.5 million. It does not need to labour under a financial millstone or any impediment to progress.

‘Ryanair flights have helped Cork Airport to grow. We cannot allow the airline to quit our runways in the wrangle over who covers the costs of building a new terminal. That wrangle should never have happened in the first place,’ said Deputy Kelleher.

ENDS