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Ireland West Airport Knock An airport for growth and jobs

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

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Ireland West Airport Knock An airport for growth and jobs

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  1. Ireland West Airport Knock An airport for growth and jobs

  2. 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.

  3. 355 hectare Site 2,300m Runway 7,080m2 Terminal building 6,000 mile range CAT II ILS low visibility landing system 25 hectare Enterprise Zone

  4. Passenger Growth: 1986 - 2012 2012 was the busiest year in the airport’s history! 5% growth to 685,000 passengers 28 Destinations

  5. Performance and efficiency • A lean, low cost airport with small management • Flights with no operational delays 99% • Staff multi-tasking 66% • Turnover €13.6m • Government subvention in 2012 €0.58m • i.e. 4% of turnover

  6. Origin of passengers using Airport in 2012 Source: Passenger surveys 2010 - 2012

  7. Good spread of counties visited by tourists from Europe in 2012 Base = 520 responses

  8. Regional Economic Return Direct employment 150 Jobs supported in wider region 900 Number of tourism bed nights 900,000 Regional tourism spend €111m Employee tax/PRSI pd to Exchequer €1m Annual contribution to GVA €17m Regional jobs impacted by airport 6,200

  9. The Social Dividend

  10. New Route Development-UK

  11. New Route Development-Europe

  12. New Route Development-Germany

  13. 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

  14. Minister urges change ofGov. policy to curtail Knock “Ifnothing 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 Shannon’s 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 31st March 2012

  15. 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

  16. Gov. Investment in Shannon • Investment package totalling €300m • Debt financing €100m+ • Transfer of annual rental income to airport €12m • Transfer of assets worth €90m • Provision of cash flow in January 2013 €6.7m • 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 3rd Jan. 2013

  17. Our position on Government’sdecisions 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

  18. Market distortion • Government ignored its own advisors Booz and Co who evaluated the prospects for Cork and Shannon airports in 2012. • Government was warned not to proceed with a support package for Shannon Airport without clear consideration of the competitive implications for other airports.

  19. Shannon/Knock comparisonprior to Dec 2012 SNN package

  20. Investment in State airports compared to Knock

  21. 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

  22. 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.

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